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Investments - Equity Securities (Details) - USD ($) $ in Thousands	3 Months Ended		12 Months Ended
	Mar. 31, 2022	Mar. 31, 2021	Dec. 31, 2021
Equity Securities, FV-NI, Gain (Loss) [Abstract]
Cost	$ 15,966		$ 15,838
Gross Gains	6		264
Gross Losses	(781)		(34)
Fair Value	15,191		$ 16,068
Unrealized Gain (Loss) on Equity Securities [Abstract]
Recognized net gains (losses) on equity securities still held	$ (1,000)	$ (400)

Significant Accounting Policies (Policies)

3 Months Ended

Mar. 31, 2022

Accounting Standards Update and Change in Accounting Principle [Abstract]

Prospective Accounting Standards

Table 2.1 shows the relevant new amendments to accounting standards, which are not yet effective or adopted.

Standard / Interpretation

Table

2.1

Amended Standards

Effective date

ASC 944

Long-Duration Contracts

•

ASU 2018-12 - Financial Services - Insurance (Topic 944): Targeted Improvements to the Accounting for Long-Duration Contracts

January 1, 2023

Targeted Improvements for Long Duration Contracts: ASU 2018-12

In August 2018, the Financial Accounting Standards Board (“FASB”) issued guidance which simplifies the amortization of deferred insurance policy acquisition costs. It also provides updates to the recognition, measurement, presentation and disclosure requirements for long duration contracts, which generally do not apply to mortgage insurance. The updated guidance requires deferred acquisition costs to be amortized on a constant level basis over the expected term of the related contracts, versus in proportion to premium, gross profits, or gross margins. In November 2020, FASB issued ASU 2020-11 deferring the effective date, so that it applies for annual periods beginning after December 15, 2022, including interim periods within those annual periods. We are currently evaluating the impacts the adoption of this guidance will have on our consolidated financial statements, but do not expect it to have a material impact.

Reinsurance - Summary of Quota Reinsurance Arrangements (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Effects of Reinsurance [Line Items]
Ceded losses incurred	$ (1,985)	$ 8,410
Quota Share Reinsurance Agreements
Effects of Reinsurance [Line Items]
Ceded premiums written and earned, net of profit commission	22,378	33,390
Ceded losses incurred	(1,985)	8,405
Ceding commissions (1)	12,272	13,067
Profit commission	$ 38,980	$ 31,944

Share-Based Compensation (Details) - $ / shares shares in Thousands	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
RSUs subject to performance conditions
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Granted (in shares)	848	966
Weighted Average Share Fair Value (in dollars per share)	$ 15.46	$ 12.82
Share-based compensation arrangement, maximum vesting percent of shares granted	200.00%
RSUs subject only to service conditions
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Granted (in shares)	413	398
Weighted Average Share Fair Value (in dollars per share)	$ 15.46	$ 12.82
Minimum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Award vesting period (in years)	1 year
Maximum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Award vesting period (in years)	3 years

Debt - Narrative (Details) $ / shares in Units, shares in Millions	3 Months Ended
	Mar. 31, 2022 USD ($) $ / shares shares	Mar. 31, 2021 USD ($)
Debt Instrument [Line Items]
Loss on debt extinguishment	$ 22,107,000	$ 0
Federal Home Loan Bank advance prepayment amount	156,300,000
Total interest payments	$ 26,700,000	$ 25,100,000
Senior Notes \| 5.75% Senior Notes Due 2023
Debt Instrument [Line Items]
Stated interest rate	5.75%
Senior Notes \| 5.25% Senior Notes Due 2028
Debt Instrument [Line Items]
Stated interest rate	5.25%
9% Convertible Junior Subordinated Debentures
Debt Instrument [Line Items]
Conversion rate (in shares per $1,000 note)	0.0765496
Principal amount of notes used in determining conversion rate	$ 1,000
Convertible debt, conversion price (in dollars per share) \| $ / shares	$ 13.06
Stated interest rate	9.00%
Extinguishment of debt, amount	$ 57,000,000
Repurchases of convertible junior subordinated debentures	77,700,000
Loss on debt extinguishment	$ 20,800,000
Reduction in potentially dilutive shares due to debt extinguishment \| shares	4.4
Federal Home Loan Bank Advances (FHLB)
Debt Instrument [Line Items]
Stated interest rate	1.91%
Loss on debt extinguishment	$ 1,300,000

Earnings per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Basic earnings per share:
Net income	$ 175,013	$ 150,021
Weighted average common shares outstanding - basic (in shares)	315,975	338,904
Basic earnings per share (in dollars per share)	$ 0.55	$ 0.44
Diluted earnings per share:
Net income	$ 175,013	$ 150,021
Diluted income available to common shareholders	$ 176,525	$ 153,733
Weighted average common shares outstanding - basic (in shares)	315,975	338,904
Effect of dilutive securities:
Weighted average common shares outstanding - diluted (in shares)	324,538	356,383
Diluted earnings per share (in dollars per share)	$ 0.54	$ 0.43
Federal statutory income tax rate (in hundredths)	21.00%	21.00%
9% Convertible Junior Subordinated Debentures
Diluted earnings per share:
Dilutive securities	$ 1,512	$ 3,712
Effect of dilutive securities:
Dilutive securities (in shares)	6,534	15,785
Stated interest rate	9.00%
Unvested RSUs
Effect of dilutive securities:
Unvested RSUs (in shares)	2,029	1,694

Fair Value Measurements

3 Months Ended

Mar. 31, 2022

Fair Value Disclosures [Abstract]

Fair Value Measurements

Recurring fair value measurements

The following describes the valuation methodologies generally used by the independent pricing sources, or by us, to measure financial instruments at fair value, including the general classification of such financial instruments pursuant to the valuation hierarchy.

•Fixed income securities:

U.S. Treasury Securities and Obligations of U.S. Government Corporations and Agencies: Securities with valuations derived from quoted prices for identical instruments in active markets that we can access are categorized in Level 1 of the fair value hierarchy. Securities valued by surveying the dealer community, obtaining relevant trade data, benchmark quotes and spreads and incorporating this information in the valuation process are categorized as Level 2 of the fair value hierarchy.

Corporate Debt Bonds are valued by surveying the dealer community, obtaining relevant trade data, benchmark quotes and spreads and incorporating this information into the valuation process. These securities are generally categorized in Level 2 of the fair value hierarchy.

Obligations of U.S. States & Political Subdivisions are valued by tracking, capturing, and analyzing quotes for active issues and trades reported via the Municipal Securities Rulemaking Board records. Daily briefings and reviews of current economic conditions, trading levels, spread relationships, and the slope of the yield curve provide further data for evaluation. These securities are generally categorized in Level 2 of the fair value hierarchy.

Residential Mortgage-Backed Securities ("RMBS") are valued by monitoring interest rate movements, and other pertinent data daily. Incoming market data is enriched to derive spread, yield and/or price data as appropriate, enabling known data points to be extrapolated for valuation application across a range of related securities. These securities are generally categorized in Level 2 of the fair value hierarchy.

Commercial Mortgage-Backed Securities ("CMBS") are valued using techniques that reflect market participants’ assumptions and maximize the use of relevant observable inputs including quoted prices for similar assets, benchmark yield curves and market corroborated inputs. Evaluation uses regular reviews of the inputs for securities covered, including executed trades, broker quotes, credit information, collateral attributes and/or cash flow waterfall as applicable. These securities are generally categorized in Level 2 of the fair value hierarchy.

Asset-Backed Securities ("ABS") are valued using spreads and other information solicited from market buy-and-sell-side sources, including primary and secondary dealers, portfolio managers, and research analysts. Cash flows are generated for each tranche, benchmark yields are determined, and deal collateral performance and tranche level attributes including trade activity, bids, and offers are applied, resulting in tranche specific prices. These securities are generally categorized in Level 2 of the fair value hierarchy.

Collateralized loan obligations ("CLOs") are valued by evaluating manager rating, seniority in the capital structure, assumptions about prepayment, default and recovery and their impact on cash flow generation. Loan level net asset values are determined and aggregated for tranches and as a final step prices are checked against available recent trade activity. These securities are generally categorized in Level 2 of the fair value hierarchy.

Foreign government debt is valued by surveying the dealer community, obtaining relevant trade data, benchmark quotes and spreads and incorporating this information into the valuation process. These securities are generally categorized in Level 2 of the fair value hierarchy.

Commercial Paper, which has an original maturity greater than 90 days, is valued using market data for comparable instruments of similar maturity and average yields. These securities are generally categorized in Level 2 of the fair value hierarchy.

•Equity securities: Consist of actively traded, exchange-listed equity securities, including exchange traded funds (“ETFs”) and Bond Mutual Funds, with valuations derived from quoted prices for identical assets in active markets that we can access. These securities are valued in Level 1 of the fair value hierarchy.

•Cash Equivalents: Consists of money market funds and treasury bills with valuations derived from quoted prices for identical assets in active markets that we can access. These securities are valued in level 1 of the fair value hierarchy. Instruments in this category valued using market data for comparable instruments are classified as level 2 in the fair value hierarchy.

•Real estate acquired is valued at the lower of our acquisition cost or a percentage of the appraised value. The percentage applied to the appraised value is based upon our historical sales experience adjusted for current trends. These securities are categorized in level 3 of the fair value hierarchy.

Assets measured at fair value, by hierarchy level, as of March 31, 2022 and December 31, 2021 are shown in tables 8.1a and 8.1b below. The fair value of the assets is estimated using the process described above, and more fully in Note 3 - “Significant Accounting Policies” to the consolidated financial statements in our 2021 Annual Report on Form 10-K.


Assets carried at fair value by hierarchy level as of March 31, 2022
Table	8.1a
(In thousands)		Total Fair Value		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
U.S. Treasury securities and obligations of U.S. government corporations and agencies		$	115,581	$	90,816	$	24,765	$	—
Obligations of U.S. states and political subdivisions		2,331,913		—		2,331,913		—
Corporate debt securities		2,502,292		—		2,502,292		—
ABS		114,144		—		114,144		—
RMBS		248,311		—		248,311		—
CMBS		289,317		—		289,317		—
CLOs		330,249		—		330,249		—
Foreign government debt		4,109		—		4,109		—

Total fixed income securities		5,935,916		90,816		5,845,100		—
Equity securities		15,191		15,191		—		—
Cash Equivalents		473,712		473,712		—		—
Real estate acquired (1)		1,052		—		—		1,052
Total		$	6,425,871	$	579,719	$	5,845,100	$	1,052


Assets carried at fair value by hierarchy level as of December 31, 2021
Table	8.1b
(In thousands)		Total Fair Value		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
U.S. Treasury securities and obligations of U.S. government corporations and agencies		$	133,407	$	102,153	$	31,254	$	—
Obligations of U.S. states and political subdivisions		2,534,653		—		2,534,653		—
Corporate debt securities		2,765,982		—		2,765,982		—
ABS		150,710		—		150,710		—
RMBS		309,110		—		309,110		—
CMBS		319,130		—		319,130		—
CLOs		360,939		—		360,939		—
Foreign government debt		13,650		—		13,650		—
Total fixed income securities		6,587,581		102,153		6,485,428		—
Equity securities		16,068		16,068		—		—
Cash Equivalents		254,230		254,230		—		—
Real estate acquired (1)		1,507		—		—		1,507
Total		$	6,859,386	$	372,451	$	6,485,428	$	1,507

(1)Real estate acquired through claim settlement, which is held for sale, is reported in “Other assets” on the consolidated balance sheets.

Certain financial instruments, including insurance contracts, are excluded from these fair value disclosure requirements. The carrying values of cash and cash equivalents (Level 1) and accrued investment income (Level 2) approximated their fair values. Additional fair value disclosures related to our investment portfolio are included in Note 7 – “Investments.”

Reconciliations of Level 3 assets

For assets measured at fair value using significant unobservable inputs (Level 3), a reconciliation of the beginning and ending balances for the three months ended March 31, 2022 and 2021 is shown in table 8.2 below. There were no losses included in earnings for those periods attributable to the change in unrealized losses on assets still held at the end of the applicable period.


Fair value roll-forward for financial instruments classified as Level 3 for the three months ended March 31,
Table	8.2
		Real Estate Acquired
(In thousands)			2022		2021
Balance at December 31,			$	1,507	$	1,092
Purchases			502		2,008
Sales			(1,026)		(1,431)
Included in earnings and reported as losses incurred, net			69		125
Balance at March 31,			$	1,052	$	1,794

Financial assets and liabilities not measured at fair value

Other invested assets include an investment in FHLB stock that is carried at cost, which due to restrictions that require it to be redeemed or sold only to the security issuer at par value, approximates fair value. The fair value of other invested assets is categorized as Level 2.

Financial liabilities include our outstanding debt obligations. The fair values of our 5.75% and 5.25% Notes and 9% Debentures were based on observable market prices. In all cases the fair values of the financial liabilities below are categorized as Level 2.

Table 8.3 presents the carrying value and fair value of our financial assets and liabilities disclosed, but not carried, at fair value at March 31, 2022 and December 31, 2021.


Financial assets and liabilities not measured at fair value
Table	8.3
		March 31, 2022				December 31, 2021
(In thousands)		Carrying Value		Fair Value		Carrying Value		Fair Value
Financial assets
Other invested assets		$	850	$	850	$	3,100	$	3,100

Financial liabilities
FHLB Advance		—		—		155,000		157,585
5.75% Senior Notes		241,419		251,009		241,255		256,213
5.25% Senior Notes		640,621		642,941		640,253		686,875
9% Convertible Junior Subordinated Debentures		53,239		71,597		110,204		151,000
Total financial liabilities		$	935,279	$	965,547	$	1,146,712	$	1,251,673

- Definition

The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information.

+ References + Details

Loss Reserves

3 Months Ended

Mar. 31, 2022

Insurance Loss Reserves [Abstract]

Loss Reserves

We establish case reserves and LAE reserves on delinquent loans that were reported to us as two or more payments past due and have not become current or resulted in a claim payment. Such loans are referred to as being in our delinquency inventory. Case reserves are established by estimating the number of loans in our delinquency inventory that will result in a claim payment, which is referred to as the claim rate, and further estimating the amount of the claim payment, which is referred to as claim severity.

IBNR reserves are established for estimated losses from delinquencies we estimate have occurred prior to the close of an accounting period, but have not yet been reported to us. IBNR reserves are also established using estimated claim rates and claim severities.

Estimation of losses is inherently judgmental. The conditions that affect the claim rate and claim severity include the current and future state of the domestic economy, including unemployment and the current and future strength of local housing markets; exposure on insured loans; the amount of time between delinquency and claim filing (all else being equal, the longer the period between delinquency and claim filing, the greater the severity); and curtailments and rescissions. The actual amount of the claim payments may be substantially different than our loss reserve estimates. Our estimates could be adversely affected by several factors, including a deterioration of regional or national economic conditions, including unemployment and the continued impact of the COVID-19 pandemic, leading to a reduction in borrowers’ income and thus their ability to make mortgage payments, the impact of past and future government initiatives and actions taken by the GSEs (including mortgage forbearance programs and foreclosure moratoriums), and a drop in housing values which may affect borrower willingness to continue to make mortgage payments when the value of the home is below the mortgage balance. Loss reserves in future periods will also be dependent on the number of loans reported to us as delinquent.

Changes to our estimates could result in a material impact to our consolidated results of operations and financial position, even in a stable economic environment. Given the uncertainty surrounding the long-term impact of COVID-19, it is difficult to predict the ultimate effect of the COVID-19 related delinquencies and forbearances on our loss incidence.

In considering the potential sensitivity of the factors underlying our estimate of loss reserves, it is possible that even a relatively small change in our estimated claim rate or claim severity could have a material impact on loss reserves and, correspondingly, on our consolidated results of operations even in a stable economic environment. For example, as of March 31, 2022, assuming all other factors remain constant, a $1,000 increase/decrease in the average severity reserve factor would change the loss reserve amount by approximately +/- $15 million. A one percentage point increase/decrease in the average claim rate reserve factor would change the loss reserve amount by approximately +/- $18 million.

The “Losses incurred” section of table 11.1 below shows losses incurred on delinquencies that occurred in the current year and in prior years. The amount of losses incurred relating to delinquencies that occurred in the current year represents the

estimated amount to be ultimately paid on such delinquencies. The amount of losses incurred relating to delinquencies that occurred in prior years represents the difference between the actual claim rate and claim severity associated with those delinquencies resolved in the current year compared to the estimated claim rate and claim severity at the prior year-end, as well as a re-estimation of amounts to be ultimately paid on delinquencies continuing from the end of the prior year. This re-estimation of the claim rate and claim severity is the result of our review of current trends in the delinquency inventory, such as percentages of delinquencies that have resulted in a claim, the amount of the claims relative to the average loan exposure, changes in the relative level of delinquencies by geography and changes in average loan exposure.

Losses incurred on delinquencies that occurred in the current year decreased in the first quarter of 2022 compared to the same period last year primarily due to a decrease in new delinquency notices reported.

For the three months ended March 31, 2022 we experienced favorable loss development of $55.7 million on previously received notices primarily related to a decrease in estimated claim rate on Peak COVID-19 delinquencies. For the three months ended March 31, 2021 we experienced favorable loss development of $1.8 million.

The “Losses paid” section of table 11.1 below shows the amount of losses paid on delinquencies that occurred in the current year and losses paid on delinquencies that occurred in prior years. In light of the uncertainty caused by the COVID-19 pandemic, specifically the foreclosure moratoriums and forbearance plans, the average time it takes to receive a claim has increased.

Table 11.1 provides a reconciliation of beginning and ending loss reserves as of and for the three months ended March 31, 2022 and 2021.


Development of reserves for losses and loss adjustment expenses
Table	11.1
		Three Months Ended March 31,
(In thousands)		2022		2021
Reserve at beginning of period		$	883,522	$	880,537
Less reinsurance recoverable		66,905		95,042
Net reserve at beginning of period		816,617		785,495

Losses incurred:
Losses and LAE incurred in respect of delinquency notices received in:
Current year		36,344		41,425
Prior years (1)		(55,658)		(1,789)
Total losses incurred		(19,314)		39,636

Losses paid:
Losses and LAE paid in respect of delinquency notices received in:
Current year		—		—
Prior years		10,748		14,922

Total losses paid		10,748		14,922
Net reserve at end of period		786,555		810,209
Plus reinsurance recoverable		64,717		102,901
Reserve at end of period		$	851,272	$	913,110

(1)A positive number for prior year loss reserve development indicates a deficiency of prior year reserves. A negative number for prior year loss reserve development indicates a redundancy of prior year loss reserves. See the following table for more information about prior year loss reserve development.

The prior year loss reserve development in the first three months of 2022 and 2021 is reflected in table 11.2 below.


Reserve development on previously received delinquencies
Table	11.2
		Three Months Ended March 31,
(In thousands)		2022		2021
Increase (decrease) in estimated claim rate on primary defaults		$	(55,777)	$	87
Increase (decrease) in estimated severity on primary defaults		(2,172)		59
Change in estimates related to pool reserves, LAE reserves, reinsurance, and other		2,291		(1,935)
Total prior year loss development (1)		$	(55,658)	$	(1,789)

(1)A positive number for prior year loss reserve development indicates a deficiency of prior year loss reserves. A negative number for prior year loss reserve development indicates a redundancy of prior year loss reserves.

Delinquency inventory

A rollforward of our primary delinquency inventory for the three months ended March 31, 2022 and 2021 appears in table 11.3 below. The information concerning new notices and cures is compiled from monthly reports received from loan servicers. The level of new notice and cure activity reported in a particular month can be influenced by, among other things, the date on which a servicer generates its report, the number of business days in a month and transfers of servicing between loan servicers.


Delinquency inventory rollforward
Table	11.3
		Three Months Ended March 31,
		2022	2021
Delinquency inventory at beginning of period		33,290	57,710
New notices		10,703	13,011
Cures		(13,200)	(17,628)
Paid claims		(322)	(312)
Rescissions and denials		(9)	(6)

Delinquency inventory at end of period		30,462	52,775

COVID-19 Pandemic Delinquencies

Our delinquency notices increased beginning in the second quarter of 2020 because of the impacts of the COVID-19 pandemic, including the high level of unemployment and economic uncertainty resulting from measures to reduce the transmission of COVID-19. Starting in the third quarter of 2020, we experienced an increase in cures associated with our COVID-19 new delinquency notices. Government initiatives and actions taken by the GSEs provided for payment forbearance on mortgages to borrowers experiencing hardship during the COVID-19 pandemic, allowing mortgage payments to be suspended for a period generally ranging from six to eighteen months.

Table 11.4 below shows the number of consecutive months a borrower is delinquent. Historically as a delinquency ages it is more likely to result in a claim.


Primary delinquency inventory - consecutive months delinquent
Table	11.4
		March 31, 2022		December 31, 2021		March 31, 2021
3 months or less		7,382		7,586		9,194
4-11 months		8,131		7,990		29,832
12 months or more (1)		14,949		17,714		13,749
Total		30,462		33,290		52,775
3 months or less		24	%	23	%	17	%
4-11 months		27	%	24	%	57	%
12 months or more		49	%	53	%	26	%
Total		100	%	100	%	100	%
Primary claims received inventory included in ending delinquent inventory		217		211		151

(1)Approximately 23%, 20%, and 26% of the primary delinquency inventory delinquent for 12 consecutive months or more has been delinquent for at least 36 consecutive months as of March 31, 2022, December 31, 2021, and March 31, 2021, respectively.

Premium refundsOur estimate of premiums to be refunded on expected claim payments is accrued for separately in “Other Liabilities” on our consolidated balance sheets and approximated $36.4 million and $37.3 million at March 31, 2022 and December 31, 2021, respectively.

Benefit Plans

3 Months Ended

Mar. 31, 2022

Retirement Benefits [Abstract]

Benefit Plans

Tables 10.1 provides the components of net periodic benefit cost for our pension, supplemental executive retirement and other postretirement benefit plans for the three months ended March 31, 2022 and 2021.


Components of net periodic benefit cost
Table	10.1
		Three Months Ended March 31,
		Pension and Supplemental Executive Retirement Plans				Other Postretirement Benefit Plans
(In thousands)		2022		2021		2022		2021
Service cost		$	1,757	$	1,664	$	348	$	364
Interest cost		2,877		2,810		177		164
Expected return on plan assets		(4,952)		(5,202)		(2,625)		(2,215)
Amortization of net actuarial losses (gains)		1,183		1,550		(754)		(439)
Amortization of prior service cost (credit)		(53)		(60)		122		53

Net periodic benefit cost (benefit)		$	812	$	762	$	(2,732)	$	(2,073)

We currently intend to make contributions totaling $6.5 million to our qualified pension and supplemental executive retirement plan in 2022.

- Definition

The entire disclosure for retirement benefits.

+ References

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+ Details

Debt - Summary of Debt Obligations (Details) - USD ($)	Mar. 31, 2022	Dec. 31, 2021
Debt Instrument [Line Items]
Long-term debt, carrying value	$ 935,300,000	$ 1,146,700,000
Federal Home Loan Bank Advances (FHLB)
Debt Instrument [Line Items]
Long-term debt, carrying value	$ 0	155,000,000.0
Stated interest rate	1.91%
Senior Notes \| 5.75% Senior Notes Due 2023
Debt Instrument [Line Items]
Long-term debt, carrying value	$ 241,400,000	241,300,000
Stated interest rate	5.75%
Debt instrument, face amount	$ 242,300,000
Senior Notes \| 5.25% Senior Notes Due 2028
Debt Instrument [Line Items]
Long-term debt, carrying value	$ 640,600,000	640,200,000
Stated interest rate	5.25%
Debt instrument, face amount	$ 650,000,000
9% Convertible Junior Subordinated Debentures
Debt Instrument [Line Items]
Long-term debt, carrying value	$ 53,300,000	$ 110,200,000
Stated interest rate	9.00%

- Definition

Amount, after unamortized (discount) premium and debt issuance costs, of long-term debt. Includes, but not limited to, notes payable, bonds payable, debentures, mortgage loans and commercial paper. Excludes capital lease obligations.

+ References + Details

Earnings per Share (Tables)

3 Months Ended

Mar. 31, 2022

Earnings Per Share [Abstract]

Calculation of earnings (loss) per share

Table 6.1 reconciles the numerators and denominators used to calculate basic and diluted EPS.


Earnings per share
Table	6.1
		Three Months Ended March 31,
(In thousands, except per share data)		2022		2021
Basic earnings per share:
Net income		$	175,013	$	150,021
Weighted average common shares outstanding - basic		315,975		338,904
Basic earnings per share		$	0.55	$	0.44

Diluted earnings per share:
Net income		$	175,013	$	150,021
Interest expense, net of tax (1):
9% Debentures		1,512		3,712
Diluted income available to common shareholders		$	176,525	$	153,733

Weighted average common shares outstanding - basic		315,975		338,904
Effect of dilutive securities:
Unvested RSUs		2,029		1,694
9% Debentures		6,534		15,785
Weighted average common shares outstanding - diluted		324,538		356,383
Diluted earnings per share		$	0.54	$	0.43

(1) Interest expense for the three months ended March 31, 2022 and 2021, respectively, has been tax effected at a rate of 21%.

Statutory Information (Details) $ in Millions	1 Months Ended	3 Months Ended
Statutory Information (Details) $ in Millions	Apr. 30, 2022 USD ($)	Mar. 31, 2022 USD ($) jurisdiction
Statutory capital requirements [Abstract]
Number of jurisdictions with risk-to-capital requirements (in jurisdictions) \| jurisdiction		16
Maximum permitted risk-to-capital ratio commonly applied		25 to 1
Maximum risk-to-capital ratio		25
Risk to capital ratio at end of period		9.2 to 1
Risk-to-capital ratio		9.2
Amount of policyholders position above or below required MPP		$ 3,700
Amount of required MPP		$ 1,900
Risk to capital ratio of combined insurance operations at end of period		9.2 to 1
Risk-to-capital ratio for combined insurance operations		9.2
Percentage of statutory policyholders surplus used to determine maximum allowable dividends (as a percent)		10.00%
Adjusted statutory net income measurement period (in years)		3 years
Adjusted statutory net income dividend payment measurement period (in years)		2 years
Subsequent Event
Statutory capital requirements [Abstract]
Dividend to be paid to holding company	$ 400

Share-Based Compensation (Tables)

3 Months Ended

Mar. 31, 2022

Share-based Payment Arrangement [Abstract]

Schedule of stock-based compensation, activity

Table 13.1 shows the number of restricted stock units (RSUs) granted to employees and the weighted average fair value per share during the periods presented (shares in thousands).


Restricted stock unit grants
Table	13.1
			Three months ended March 31,
			2022			2021
			RSUs Granted (in thousands)	Weighted Average Share Fair Value		RSUs Granted (in thousands)	Weighted Average Share Fair Value
RSUs subject to performance conditions		(1)	848	$	15.46	966	$	12.82
RSUs subject only to service conditions			413	15.46		398	12.82

(1)Shares granted are subject to performance conditions under which the target number of shares granted may vest up to 200%.

CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands	Mar. 31, 2022	Dec. 31, 2021
Statement of Financial Position [Abstract]
Fixed maturities, amortized cost	$ 6,088,948	$ 6,397,658
Cost	$ 15,966	$ 15,838
Common stock, par value (in dollars per share)	$ 1	$ 1
Common stock, shares authorized (in shares)	1,000,000,000	1,000,000,000
Common stock, shares issued (in shares)	371,353,000	371,353,000
Common stock, shares outstanding (in shares)	312,581,000	320,336,000
Treasury stock, shares at cost (in shares)	58,772,000	51,017,000

CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY - USD ($) $ in Thousands	Total	Common stock	Paid-in capital	Paid-in capital Cumulative Effect, Period of Adoption, Adjustment	Paid-in capital Cumulative Effect, Period of Adoption, Adjusted Balance	Treasury stock	Accumulated other comprehensive income (loss)	Retained earnings	Retained earnings Cumulative Effect, Period of Adoption, Adjustment	Retained earnings Cumulative Effect, Period of Adoption, Adjusted Balance
Balance, beginning of period at Dec. 31, 2020		$ 371,353	$ 1,862,042	$ (68,289)	$ 1,793,753	$ (393,326)	$ 216,821	$ 2,642,096	$ 68,289	$ 2,710,385
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Reissuance of treasury stock, net under share-based compensation plans			(15,397)			8,776
Equity compensation			3,685
Repurchase of common stock						0
Other comprehensive income (loss), net of tax	$ (93,256)						(93,256)
Net income	150,021							150,021
Cash dividends								(20,522)
Balance, end of period at Mar. 31, 2021	$ 4,732,293	371,353	1,782,041			(384,550)	123,565	2,839,884
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Accounting Standards Update [Extensible Enumeration]	Accounting Standards Update 2020-06 [Member]
Balance, beginning of period at Dec. 31, 2021	$ 4,861,382	371,353	1,794,906			(675,265)	119,697	3,250,691
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Reissuance of treasury stock, net under share-based compensation plans			(17,867)			9,179
Equity compensation			6,572
Repurchase of common stock						(127,610)
Other comprehensive income (loss), net of tax	(270,545)						(270,545)
Net income	175,013							175,013
Cash dividends								(25,769)
Balance, end of period at Mar. 31, 2022	$ 4,610,355	$ 371,353	$ 1,783,611			$ (793,696)	$ (150,848)	$ 3,399,935

- Definition

Indicates amendment to accounting standards.

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The portion of profit or loss for the period, net of income taxes, which is attributable to the parent.

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- Definition

Total of all stockholders' equity (deficit) items, net of receivables from officers, directors, owners, and affiliates of the entity which are attributable to the parent. The amount of the economic entity's stockholders' equity attributable to the parent excludes the amount of stockholders' equity which is allocable to that ownership interest in subsidiary equity which is not attributable to the parent (noncontrolling interest, minority interest). This excludes temporary equity and is sometimes called permanent equity.

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+ Details

Reinsurance (Tables)

3 Months Ended

Mar. 31, 2022

Reinsurance Disclosures [Abstract]

Effect of reinsurance agreement

The effect of all of our reinsurance agreements on premiums earned and losses incurred is shown in table 4.1 below.


Reinsurance
Table	4.1
		Three Months Ended March 31,
(In thousands)		2022		2021
Premiums earned:
Direct		$	287,273	$	296,271
Assumed		2,126		2,411
Ceded (1)		(34,159)		(43,637)
Net premiums earned		$	255,240	$	255,045

Losses incurred:
Direct		$	(21,092)	$	48,071
Assumed		(207)		(25)
Ceded		1,985		(8,410)
Losses incurred, net		$	(19,314)	$	39,636

(1)Ceded premiums earned net of profit commission.

Schedule Of Quota Share Reinsurance Agreements

Table 4.2 below provides additional detail regarding our QSR Transactions.


Quota Share Reinsurance
Table	4.2

Quota Share Contract		Covered Policy Years	Quota Share %		Annual Loss Ratio to Exhaust Profit Commission (1)		Contractual Termination Date
2015 QSR		Prior to 2017	15.0	%	68.0	%	December 31, 2031
2019 QSR		2019	30.0	%	62.0	%	December 31, 2030
2020 QSR		2020	12.5	%	62.0	%	December 31, 2031
2020 QSR and 2021 QSR		2020	17.5	%	62.0	%	December 31, 2032
2020 QSR and 2021 QSR		2021	17.5	%	61.9	%	December 31, 2032
2021 QSR and 2022 QSR		2021	12.5	%	57.5	%	December 31, 2032
2021 QSR and 2022 QSR		2022	15.0	%	57.5	%	December 31, 2033
2022 QSR and 2023 QSR		2022	15.0	%	62.0	%	December 31, 2033
2022 QSR and 2023 QSR		2023	15.0	%	62.0	%	December 31, 2034
Credit Union QSR (2)		2020-2025	65.0	%	50.0	%	December 31, 2039

(1) We will receive a profit commission provided the annual loss ratio on policies covered under the transaction remains below this ratio.

(2) Eligible credit union business written before April 1, 2020 was covered by our 2019 and prior QSR Transactions.

Table 4.3 provides additional detail regarding optional termination dates and optional reductions to our quota share percentage which can, in each case, be elected by us for a fee. Under the optional reduction to the quota share percentage, we may reduce our quota share percentage from the original percentage shown in table 4.2 to the percentage shown in table 4.3.

Quota Share Reinsurance

Table

4.3

Quota Share Contract

Optional Termination Date (1)

Optional Quota Share % Reduction Date (2)

Optional Reduced Quota Share %

2015 QSR

June 30, 2021

2019 QSR

July 1, 2022

25% or 20%

2020 QSR

December 31, 2022

July 1, 2022

10.5% or 8%

2020 QSR and 2021 QSR, 2020 Policy year

December 31, 2022

July 1, 2022

14.5% or 12%

2020 QSR and 2021 QSR, 2021 Policy year

December 31, 2023

July 1, 2022

14.5% or 12%

2021 QSR and 2022 QSR. 2021 Policy Year

December 31, 2023

July 1, 2022

10.5% or 8%

2021 QSR and 2022 QSR, 2022 Policy Year

December 31, 2024

July 1, 2023

12.5% or 10%

2022 QSR and 2023 QSR, 2022 Policy Year

December 31, 2024

July 1, 2023

12.5% or 10%

2022 QSR and 2023 QSR, 2023 Policy Year

December 31, 2025

July 1, 2024

12.5% or 10%

(1) We can elect early termination of the QSR Transaction beginning on this date, and bi-annually thereafter.

(2) We can elect to reduce the quota share percentage beginning on this date, and bi-annually thereafter.

Effect of quota share reinsurance agreements on premiums earned and losses incurred

Table 4.4 below provides a summary of our QSR Transactions, for the three months ended March 31, 2022 and 2021.


Quota Share Reinsurance
Table	4.4
		Three Months Ended March 31,
(In thousands)		2022		2021
Ceded premiums written and earned, net of profit commission		$	22,378	$	33,390
Ceded losses incurred		(1,985)		8,405
Ceding commissions (1)		12,272		13,067
Profit commission		38,980		31,944

(1) Ceding commissions are reported within Other underwriting and operating expenses, net on the consolidated statements of operations.

Schedule of coverages and retention

Table 4.5 provides a summary of our Home Re Transactions as of March 31, 2022 and December 31, 2021.


Excess of Loss Reinsurance
Table 4.5
($ in thousands)	Home Re 2021-2, Ltd.	Home Re 2021-1, Ltd.	Home Re 2020-1, Ltd.	Home Re 2019-1, Ltd.	Home Re 2018-1, Ltd.
Issue Date	August 3, 2021	February 2, 2021	October 29, 2020	May 25, 2019	October 30, 2018
Policy Inforce Dates	January 1, 2021 - May 28, 2021	August 1, 2020 - December 31, 2020	January 1, 2020 - July 31, 2020	January 1, 2018 - March 31, 2019	July 1, 2016 - December 31, 2017
Optional Call Date (1)	July 25, 2028	January 25, 2028	October 25, 2027	May 25, 2026	October 25, 2025
Legal Maturity	12.5 years	12.5 years	10 years	10 years	10 years
Initial First Layer Retention	190,159	211,159	275,283	185,730	168,691
Initial Excess of Loss Reinsurance Coverage	398,429	398,848	412,917	315,739	318,636
March 31, 2022
Remaining First Layer Retention	190,159	211,142	275,172	183,807	165,179
Remaining Excess of Loss Reinsurance Coverage	398,429	361,362	196,552	208,146	218,343
December 31, 2021
Remaining First Layer Retention	190,159	211,142	275,204	183,917	165,365
Remaining Excess of Loss Reinsurance Coverage	398,429	387,830	234,312	208,146	218,343

(1) We have the right to terminate the Home Re Transactions under certain circumstances and on any payment date on or after the respective Optional Call Date.

Schedule of total assets of Home Re

Table 4.6 presents the total assets of the Home Re Entities as of March 31, 2022 and December 31, 2021.


Home Re total assets
Table	4.6
(In thousands)
Home Re Entity		Total VIE Assets
March 31, 2022
Home Re 2018-1 Ltd.		$	218,343
Home Re 2019-1 Ltd.		208,146
Home Re 2020-1 Ltd.		209,686
Home Re 2021-1 Ltd.		370,621
Home Re 2021-2 Ltd.		398,429

December 31, 2021
Home Re 2018-1 Ltd.		$	218,343
Home Re 2019-1 Ltd.		208,146
Home Re 2020-1 Ltd.		251,387
Home Re 2021-1 Ltd.		398,848
Home Re 2021-2 Ltd.		398,429

- Definition

Tabular disclosure of the significant judgments and assumptions made in determining whether a variable interest (as defined) held by the entity requires the variable interest entity (VIE) (as defined) to be consolidated and (or) disclose information about its involvement with the VIE, individually or in aggregate (as applicable); the nature of restrictions, if any, on the consolidated VIE's assets and on the settlement of its liabilities reported by an entity in its statement of financial position, including the carrying amounts of such assets and liabilities; the nature of, and changes in, the risks associated with involvement in the VIE; how involvement with the VIE affects the entity's financial position, financial performance, and cash flows; the lack of recourse if creditors (or beneficial interest holders) of the consolidated VIE have no recourse to the general credit of the primary beneficiary (if applicable); the terms of arrangements, giving consideration to both explicit arrangements and implicit variable interests, if any, that could require the entity to provide financial support to the VIE, including events or circumstances that could expose the entity to a loss; the methodology used by the entity for determining whether or not it is the primary beneficiary of the variable interest entity; the significant factors considered and judgments made in determining that the power to direct the activities of a VIE that most significantly impact the VIE's economic performance are shared (as defined); the carrying amounts and classification of assets and liabilities of the VIE included in the statement of financial position; the entity's maximum exposure to loss, if any, as a result of its involvement with the VIE, including how the maximum exposure is determined and significant sources of the entity's exposure to the VIE; a comparison of the carrying amounts of the assets and liabilities and the entity's maximum exposure to loss; information about any liquidity arrangements, guarantees, and (or) other commitments by third parties that may affect the fair value or risk of the entity's variable interest in the VIE; whether or not the entity has provided financial support or other support (explicitly or implicitly) to the VIE that it was not previously contractually required to provide or whether the entity intends to provide that support, including the type and amount of the support and the primary reasons for providing the support; and supplemental information the entity determines necessary to provide.

+ References + Details

Investments (Tables)

3 Months Ended

Mar. 31, 2022

Investments [Abstract]

Amortized cost, gross unrealized gains and losses and fair value of fixed income securities

Our fixed income securities classified as available-for-sale at March 31, 2022 and December 31, 2021 are shown in tables 7.1a and 7.1b below.


Details of fixed income securities by category as of March 31, 2022
Table	7.1a
(In thousands)		Amortized Cost		Gross Unrealized Gains		Gross Unrealized (Losses)		Fair Value
U.S. Treasury securities and obligations of U.S. government corporations and agencies		$	120,223	$	70	$	(4,712)	$	115,581
Obligations of U.S. states and political subdivisions		2,383,899		38,260		(90,246)		2,331,913
Corporate debt securities		2,572,570		14,382		(84,660)		2,502,292
ABS		117,517		91		(3,464)		114,144
RMBS		259,849		56		(11,594)		248,311
CMBS		298,490		267		(9,440)		289,317
CLOs		331,914		5		(1,670)		330,249
Foreign government debt		4,486		—		(377)		4,109

Total fixed income securities		$	6,088,948	$	53,131	$	(206,163)	$	5,935,916


Details of fixed income securities by category as of December 31, 2021
Table	7.1b

(In thousands)		Amortized Cost		Gross Unrealized Gains		Gross Unrealized (Losses) (1)		Fair Value
U.S. Treasury securities and obligations of U.S. government corporations and agencies		$	133,990	$	285	$	(868)	$	133,407
Obligations of U.S. states and political subdivisions		2,408,688		133,361		(7,396)		2,534,653
Corporate debt securities		2,704,586		75,172		(13,776)		2,765,982
ABS		150,888		830		(1,008)		150,710
RMBS		309,991		2,397		(3,278)		309,110
CMBS		315,330		5,736		(1,936)		319,130
CLOs		360,436		609		(106)		360,939
Foreign government debt		13,749		—		(99)		13,650
Total fixed income securities		$	6,397,658	$	218,390	$	(28,467)	$	6,587,581

Amortized cost and fair values of fixed income securities by contractual maturity

The amortized cost and fair values of fixed income securities at March 31, 2022, by contractual maturity, are shown in table 7.2 below. Actual maturities will differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties. Because most ABS, RMBS, CMBS, and CLOs provide for periodic payments throughout their lives, they are listed in separate categories.


Fixed income securities maturity schedule
Table	7.2
		March 31, 2022
(In thousands)		Amortized cost		Fair Value
Due in one year or less		$	319,247	$	320,108
Due after one year through five years		1,575,075		1,557,833
Due after five years through ten years		1,747,456		1,703,148
Due after ten years		1,439,400		1,372,806
		5,081,178		4,953,895

ABS		117,517		114,144
RMBS		259,849		248,311
CMBS		298,490		289,317
CLOs		331,914		330,249
Total as of March 31, 2022		$	6,088,948	$	5,935,916

Schedule of Proceeds from Sale of Securities

The proceeds from the sale of fixed income securities classified as available-for-sale along with gross gains (losses) associated with such sales are shown in table 7.3 below.


Details of fixed income securities gains (losses)
Table	7.3	Three Months Ended March 31,
(in thousands)		2022	2021

Gains on sales		4,134	3,016
Losses on sales		(4,657)	(392)
Change in credit allowance		—	18

Proceeds from sales of fixed income securities		216,824	56,827

Cost and fair value of investments in equity securities

The cost and fair value of investments in equity securities at March 31, 2022 and December 31, 2021 are shown in tables 7.4a and 7.4b below.


Details of equity security investments as of March 31, 2022
Table	7.4a

(In thousands)		Cost		Gross Gains		Gross Losses		Fair Value
Equity securities		$	15,966	$	6	$	(781)	$	15,191


Details of equity security investments as of December 31, 2021
Table	7.4b

(In thousands)		Cost		Gross Gains		Gross Losses		Fair Value
Equity securities		$	15,838	$	264	$	(34)	$	16,068

Aging of the fair values of securities in an unrealized loss position

Tables 7.5a and 7.5b below summarize, for all available-for-sale investments in an unrealized loss position at March 31, 2022 and December 31, 2021, the aggregate fair value and gross unrealized loss by the length of time those securities have been continuously in an unrealized loss position. The fair value amounts reported in tables 7.5a and 7.5b are estimated using the process described in Note 8 - “Fair Value Measurements” to these consolidated financial statements and in Note 3 - “Significant Accounting Policies” to the consolidated financial statements in our 2021 Annual Report on Form 10-K.


Unrealized loss aging for securities by type and length of time as of March 31, 2022
Table	7.5a

		Less Than 12 Months				12 Months or Greater				Total
(In thousands)		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
U.S. Treasury securities and obligations of U.S. government corporations and agencies		$	89,952	$	(4,508)	$	2,589	$	(204)	$	92,541	$	(4,712)
Obligations of U.S. states and political subdivisions		1,033,010		(86,569)		36,513		(3,677)		1,069,523		(90,246)
Corporate debt securities		1,305,092		(66,461)		168,499		(18,199)		1,473,591		(84,660)
ABS		82,000		(3,066)		8,660		(398)		90,660		(3,464)
RMBS		204,868		(8,805)		39,473		(2,789)		244,341		(11,594)
CMBS		222,998		(7,773)		25,201		(1,667)		248,199		(9,440)
CLOs		277,052		(1,238)		41,840		(432)		318,892		(1,670)
Foreign government debt		4,108		(377)		—		—		4,108		(377)
Total		$	3,219,080	$	(178,797)	$	322,775	$	(27,366)	$	3,541,855	$	(206,163)


Unrealized loss aging for securities by type and length of time as of December 31, 2021
Table	7.5b

		Less Than 12 Months				12 Months or Greater				Total
(In thousands)		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
U.S. Treasury securities and obligations of U.S. government corporations and agencies		$	91,154	$	(790)	$	2,616	$	(78)	$	93,770	$	(868)
Obligations of U.S. states and political subdivisions		452,021		(7,189)		15,540		(207)		467,561		(7,396)
Corporate debt securities		865,085		(13,260)		10,997		(516)		876,082		(13,776)
ABS		100,064		(998)		1,552		(10)		101,616		(1,008)
RMBS		180,586		(2,548)		31,641		(730)		212,227		(3,278)
CMBS		89,889		(1,887)		1,511		(49)		91,400		(1,936)
CLOs		177,663		(71)		21,973		(35)		199,636		(106)
Foreign government debt		13,649		(99)		—		—		13,649		(99)
Total		$	1,970,111	$	(26,842)	$	85,830	$	(1,625)	$	2,055,941	$	(28,467)

Earnings per Share

3 Months Ended

Mar. 31, 2022

Earnings Per Share [Abstract]

Earnings per Share

Basic earnings per share (“EPS”) is calculated by dividing net income by the weighted average number of shares of common stock outstanding. For purposes of calculating basic EPS, vested restricted stock and restricted stock units (“RSUs”) are considered outstanding. Diluted EPS includes the components of basic EPS and also gives effect to dilutive common stock equivalents. The determination of whether components are dilutive is calculated independently for each period. We calculate diluted EPS using the treasury stock method and if-converted method. Under the treasury stock method, diluted EPS reflects the potential dilution that could occur if unvested RSUs result in the issuance of common stock. Under the if-converted method, diluted EPS reflects the potential dilution that could occur if our 9% Debentures result in the issuance of common stock. The determination of potentially issuable shares does not consider the satisfaction of the conversion requirements and the shares are included in the determination of diluted EPS as of the beginning of the period, if dilutive.

Table 6.1 reconciles the numerators and denominators used to calculate basic and diluted EPS.


Earnings per share
Table	6.1
		Three Months Ended March 31,
(In thousands, except per share data)		2022		2021
Basic earnings per share:
Net income		$	175,013	$	150,021
Weighted average common shares outstanding - basic		315,975		338,904
Basic earnings per share		$	0.55	$	0.44

Diluted earnings per share:
Net income		$	175,013	$	150,021
Interest expense, net of tax (1):
9% Debentures		1,512		3,712
Diluted income available to common shareholders		$	176,525	$	153,733

Weighted average common shares outstanding - basic		315,975		338,904
Effect of dilutive securities:
Unvested RSUs		2,029		1,694
9% Debentures		6,534		15,785
Weighted average common shares outstanding - diluted		324,538		356,383
Diluted earnings per share		$	0.54	$	0.43

(1) Interest expense for the three months ended March 31, 2022 and 2021, respectively, has been tax effected at a rate of 21%.

Investments (Details) $ in Thousands	3 Months Ended
Investments (Details) $ in Thousands	Mar. 31, 2022 USD ($) security	Mar. 31, 2021 USD ($)	Dec. 31, 2021 USD ($) security
Debt Securities, Available-for-sale [Line Items]
Amortized Cost	$ 6,088,948		$ 6,397,658
Fair Value	5,935,916		6,587,581
Assets held by insurance regulatory requirements	12,800		13,400
Assets held in trust for the benefit of contractual counterparties	$ 183,400		189,800
FHLB advance, collateral pledged			$ 167,200
Number of securities in unrealized loss position (in securities) \| security	909		610
Total fixed income securities
Debt Securities, Available-for-sale [Line Items]
Amortized Cost	$ 6,088,948		$ 6,397,658
Gross Unrealized Gains	53,131		218,390
Gross Unrealized Losses	(206,163)		(28,467)
Fair Value	5,935,916		6,587,581
Gains on sales	4,134	$ 3,016
Losses on sales	(4,657)	(392)
Change in credit allowance	0	18
Proceeds from sales of fixed income securities	216,824	$ 56,827
U.S. Treasury securities and obligations of U.S. government corporations and agencies
Debt Securities, Available-for-sale [Line Items]
Amortized Cost	120,223		133,990
Gross Unrealized Gains	70		285
Gross Unrealized Losses	(4,712)		(868)
Fair Value	115,581		133,407
Obligations of U.S. states and political subdivisions
Debt Securities, Available-for-sale [Line Items]
Amortized Cost	2,383,899		2,408,688
Gross Unrealized Gains	38,260		133,361
Gross Unrealized Losses	(90,246)		(7,396)
Fair Value	2,331,913		2,534,653
Corporate debt securities
Debt Securities, Available-for-sale [Line Items]
Amortized Cost	2,572,570		2,704,586
Gross Unrealized Gains	14,382		75,172
Gross Unrealized Losses	(84,660)		(13,776)
Fair Value	2,502,292		2,765,982
ABS
Debt Securities, Available-for-sale [Line Items]
Amortized Cost	117,517		150,888
Gross Unrealized Gains	91		830
Gross Unrealized Losses	(3,464)		(1,008)
Fair Value	114,144		150,710
RMBS
Debt Securities, Available-for-sale [Line Items]
Amortized Cost	259,849		309,991
Gross Unrealized Gains	56		2,397
Gross Unrealized Losses	(11,594)		(3,278)
Fair Value	248,311		309,110
CMBS
Debt Securities, Available-for-sale [Line Items]
Amortized Cost	298,490		315,330
Gross Unrealized Gains	267		5,736
Gross Unrealized Losses	(9,440)		(1,936)
Fair Value	289,317		319,130
CLOs
Debt Securities, Available-for-sale [Line Items]
Amortized Cost	331,914		360,436
Gross Unrealized Gains	5		609
Gross Unrealized Losses	(1,670)		(106)
Fair Value	330,249		360,939
Foreign government debt
Debt Securities, Available-for-sale [Line Items]
Amortized Cost	4,486		13,749
Gross Unrealized Gains	0		0
Gross Unrealized Losses	(377)		(99)
Fair Value	$ 4,109		$ 13,650

CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Mar. 31, 2022	Dec. 31, 2021
Investment portfolio:
Fixed income, available-for-sale, at fair value (amortized cost 2022 - $6,088,948; 2021 - $6,397,658)	$ 5,935,916	$ 6,587,581
Equity securities, at fair value (cost 2022 - $15,966; 2021 - $15,838)	15,191	16,068
Other invested assets, at cost	850	3,100
Total investment portfolio	5,951,957	6,606,749
Cash and cash equivalents	477,113	284,690
Restricted cash and cash equivalents	12,784	20,268
Accrued investment income	50,400	51,902
Reinsurance recoverable on loss reserves	64,717	66,905
Reinsurance recoverable on paid losses	203	36,275
Premiums receivable	57,338	56,540
Home office and equipment, net	45,184	45,614
Deferred insurance policy acquisition costs	21,538	21,671
Other assets	163,567	134,394
Total assets	398,429	398,429
Liabilities:
Loss reserves	851,272	883,522
Unearned premiums	229,115	241,690
Federal Home Loan Bank advance	0	155,000
Senior notes	882,040	881,508
Convertible junior subordinated debentures	53,239	110,204
Other liabilities	218,780	191,702
Total liabilities	2,234,446	2,463,626
Contingencies
Shareholders’ equity:
Common stock (one dollar par value, shares authorized 1,000,000; shares issued 2022 - 371,353; 2021 - 371,353; shares outstanding 2022 - 312,581; 2021 - 320,336)	371,353	371,353
Paid-in capital	1,783,611	1,794,906
Treasury stock at cost (shares 2022 - 58,772; 2021 - 51,017)	(793,696)	(675,265)
Accumulated other comprehensive income, net of tax	(150,848)	119,697
Retained earnings	3,399,935	3,250,691
Total shareholders’ equity	4,610,355	4,861,382
Total liabilities and shareholders’ equity	$ 6,844,801	$ 7,325,008

Loss Reserves (Tables)

3 Months Ended

Mar. 31, 2022

Insurance Loss Reserves [Abstract]

Reconciliation of beginning and ending loss reserves

Table 11.1 provides a reconciliation of beginning and ending loss reserves as of and for the three months ended March 31, 2022 and 2021.


Development of reserves for losses and loss adjustment expenses
Table	11.1
		Three Months Ended March 31,
(In thousands)		2022		2021
Reserve at beginning of period		$	883,522	$	880,537
Less reinsurance recoverable		66,905		95,042
Net reserve at beginning of period		816,617		785,495

Losses incurred:
Losses and LAE incurred in respect of delinquency notices received in:
Current year		36,344		41,425
Prior years (1)		(55,658)		(1,789)
Total losses incurred		(19,314)		39,636

Losses paid:
Losses and LAE paid in respect of delinquency notices received in:
Current year		—		—
Prior years		10,748		14,922

Total losses paid		10,748		14,922
Net reserve at end of period		786,555		810,209
Plus reinsurance recoverable		64,717		102,901
Reserve at end of period		$	851,272	$	913,110

Prior year development of the reserves

The prior year loss reserve development in the first three months of 2022 and 2021 is reflected in table 11.2 below.


Reserve development on previously received delinquencies
Table	11.2
		Three Months Ended March 31,
(In thousands)		2022		2021
Increase (decrease) in estimated claim rate on primary defaults		$	(55,777)	$	87
Increase (decrease) in estimated severity on primary defaults		(2,172)		59
Change in estimates related to pool reserves, LAE reserves, reinsurance, and other		2,291		(1,935)
Total prior year loss development (1)		$	(55,658)	$	(1,789)

Rollforward of primary delinquent inventory


Delinquency inventory rollforward
Table	11.3
		Three Months Ended March 31,
		2022	2021
Delinquency inventory at beginning of period		33,290	57,710
New notices		10,703	13,011
Cures		(13,200)	(17,628)
Paid claims		(322)	(312)
Rescissions and denials		(9)	(6)

Delinquency inventory at end of period		30,462	52,775

Aging of the primary delinquent inventory

Table 11.4 below shows the number of consecutive months a borrower is delinquent. Historically as a delinquency ages it is more likely to result in a claim.


Primary delinquency inventory - consecutive months delinquent
Table	11.4
		March 31, 2022		December 31, 2021		March 31, 2021
3 months or less		7,382		7,586		9,194
4-11 months		8,131		7,990		29,832
12 months or more (1)		14,949		17,714		13,749
Total		30,462		33,290		52,775
3 months or less		24	%	23	%	17	%
4-11 months		27	%	24	%	57	%
12 months or more		49	%	53	%	26	%
Total		100	%	100	%	100	%
Primary claims received inventory included in ending delinquent inventory		217		211		151

Loss Reserves (Details) $ in Thousands	3 Months Ended
Loss Reserves (Details) $ in Thousands	Mar. 31, 2022 USD ($) loan	Mar. 31, 2021 USD ($) loan	Dec. 31, 2021 USD ($)
Causes of Increase (Decrease) in Liability for Unpaid Claims and Claims Adjustment Expense [Line Items]
Increase (decrease) in loss reserves	$ (32,250)	$ 32,573
Prior years	(55,658)	(1,789)
Prior years	10,748	$ 14,922
Premium refund liability, expected claim payments	$ 36,400		$ 37,300
Primary Delinquent Inventory [Roll Forward]
Delinquent inventory at the beginning of period (in loans) \| loan	33,290	57,710
New notices (in loans) \| loan	10,703	13,011
Cures (in loans) \| loan	(13,200)	(17,628)
Paids (including those charged to a deductible or captive) (in loans) \| loan	(322)	(312)
Rescissions and denials (in loans) \| loan	(9)	(6)
Delinquent inventory at end of period (in loans) \| loan	30,462	52,775
$1,000 Increase/Decrease In Average Severity Reserve Factor
Causes of Increase (Decrease) in Liability for Unpaid Claims and Claims Adjustment Expense [Line Items]
Increase (decrease) in loss reserves	$ 15,000
One Percentage Point Increase/Decrease In Average Claim Rate Reserve Factor
Causes of Increase (Decrease) in Liability for Unpaid Claims and Claims Adjustment Expense [Line Items]
Increase (decrease) in loss reserves	18,000
Increase (decrease) in estimated claim rate on primary defaults
Causes of Increase (Decrease) in Liability for Unpaid Claims and Claims Adjustment Expense [Line Items]
Prior years	(55,777)	$ 87
Increase (decrease) in estimated severity on primary defaults
Causes of Increase (Decrease) in Liability for Unpaid Claims and Claims Adjustment Expense [Line Items]
Prior years	(2,172)	59
Change in estimates related to pool reserves, LAE reserves, reinsurance, and other
Causes of Increase (Decrease) in Liability for Unpaid Claims and Claims Adjustment Expense [Line Items]
Prior years	$ 2,291	$ (1,935)

Share-Based Compensation

3 Months Ended

Mar. 31, 2022

Share-based Payment Arrangement [Abstract]

Share-Based Compensation

We have certain share-based compensation plans. Under the fair value method, compensation cost is measured at the grant date based on the fair value of the award and is recognized over the service period which generally corresponds to the vesting period. Awards under our plans generally vest over periods ranging from one to three years, although awards to our non-employee directors vest immediately.

Table 13.1 shows the number of restricted stock units (RSUs) granted to employees and the weighted average fair value per share during the periods presented (shares in thousands).


Restricted stock unit grants
Table	13.1
			Three months ended March 31,
			2022			2021
			RSUs Granted (in thousands)	Weighted Average Share Fair Value		RSUs Granted (in thousands)	Weighted Average Share Fair Value
RSUs subject to performance conditions		(1)	848	$	15.46	966	$	12.82
RSUs subject only to service conditions			413	15.46		398	12.82

(1)Shares granted are subject to performance conditions under which the target number of shares granted may vest up to 200%.

Debt

3 Months Ended

Mar. 31, 2022

Debt Disclosure [Abstract]

Debt

Debt obligations

The aggregate carrying values of our long-term debt obligations and their par values, if different, as of March 31, 2022 and December 31, 2021 are presented in table 3.1 below.


Long-term debt obligations
Table	3.1
(In millions)		March 31, 2022		December 31, 2021
FHLB Advance - 1.91%, due February 2023		$	—	$	155.0
5.75% Notes, due August 2023 (par value: $242.3 million)		241.4		241.3
5.25% Notes, due August 2028 (par value: $650 million)		640.6		640.2
9% Debentures, due April 2063 (1)		53.3		110.2
Long-term debt, carrying value		$	935.3	$	1,146.7

(1)Convertible at any time prior to maturity at the holder’s option, at a conversion rate, which is subject to adjustment, of 76.5496 shares per $1,000 principal amount, representing a conversion price of approximately $13.06 per share. The payment of dividends by our holding company results in adjustments to the conversion rate, with such adjustment generally deferred until the end of the year.

The 5.75% Senior Notes (“5.75% Notes”), 5.25% Senior Notes (5.25% Notes) and 9% Convertible Junior Subordinated Debentures (“9% Debentures”) are obligations of our holding company, MGIC Investment Corporation.

In the first quarter of 2022, we repurchased $57.0 million in aggregate principal amount of our 9% Debentures at a purchase price of $77.7 million plus accrued interest. The repurchase of 9% Debentures resulted in a $20.8 million loss on debt extinguishment on our consolidated statement of operations and a reduction of approximately 4.4 million shares in our potentially dilutive shares.

The Federal Home Loan Bank Advance (the “FHLB Advance”) was an obligation of MGIC. In the first quarter of 2022, we repaid the outstanding principal balance of the FHLB Advance at a prepayment price of $156.3 million, incurring a prepayment fee of $1.3 million.

See Note 7 “Debt” in our Annual Report on Form 10-K for the year ended December 31, 2021 for additional information pertaining to our debt obligations.. As of March 31, 2022 we are in compliance with all of our debt covenants.

Interest payments

Interest payments for the three months ended March 31, 2022 and 2021 were $26.7 million and $25.1 million, respectively.

- Definition

The entire disclosure for information about short-term and long-term debt arrangements, which includes amounts of borrowings under each line of credit, note payable, commercial paper issue, bonds indenture, debenture issue, own-share lending arrangements and any other contractual agreement to repay funds, and about the underlying arrangements, rationale for a classification as long-term, including repayment terms, interest rates, collateral provided, restrictions on use of assets and activities, whether or not in compliance with debt covenants, and other matters important to users of the financial statements, such as the effects of refinancing and noncompliance with debt covenants.

+ References

Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-URI http://asc.fasb.org/topic&trid=2208564

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-SubTopic 20
-Section 50
-Paragraph 1B
-Subparagraph (h)
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+ Details

Reinsurance - Excess of Loss Reinsurance (Details) - USD ($) $ in Thousands						3 Months Ended	12 Months Ended
	Aug. 03, 2021	Feb. 02, 2021	Oct. 29, 2020	May 25, 2019	Oct. 30, 2018	Mar. 31, 2022	Dec. 31, 2021	Apr. 26, 2022
Effects of Reinsurance [Line Items]
Term of mortgage insurance-linked notes	12 years 6 months	12 years 6 months	10 years	10 years	10 years
Initial First Layer Retention	$ 190,159	$ 211,159	$ 275,283	$ 185,730	$ 168,691
Remaining First Layer Retention						$ 165,179	$ 165,365
Remaining Excess of Loss Reinsurance Coverage	$ 398,429	$ 398,848	$ 412,917	$ 315,739	$ 318,636	$ 218,343	$ 218,343
Subsequent Event
Effects of Reinsurance [Line Items]
Remaining Excess of Loss Reinsurance Coverage								$ 473,600

Litigation and Contingencies	3 Months Ended
Litigation and Contingencies	Mar. 31, 2022
Commitments and Contingencies Disclosure [Abstract]
Litigation and Contingencies	Litigation and Contingencies Before paying an insurance claim, generally we review the loan and servicing files to determine the appropriateness of the claim amount. When reviewing the files, we may determine that we have the right to rescind coverage or deny a claim on the loan (both referred to as “rescissions”). In addition, our insurance policies generally provide that we can reduce a claim if the servicer did not comply with its obligations under our insurance policy (such reduction referred to as a “curtailment”). In recent years, an immaterial percentage of claims received in a quarter have been resolved by rescissions. In the first quarter of 2022 and in 2021, curtailments reduced our average claim paid by approximately 5.3% and 4.4%, respectively. The COVID-19 related foreclosure moratoriums and forbearance plans decreased our claims paid activity beginning in the second quarter of 2020. It is difficult to predict the level of curtailments once foreclosure activity returns to a more typical level. Our loss reserving methodology incorporates our estimates of future rescissions, curtailments, and reversals of rescissions and curtailments. A variance between ultimate actual rescission, curtailment and reversal rates and our estimates, as a result of the outcome of litigation, settlements or other factors, could materially affect our losses. When the insured disputes our right to rescind coverage or curtail claims, we generally engage in discussions in an attempt to settle the dispute. If we are unable to reach a settlement, the outcome of a dispute ultimately may be determined by legal proceedings. Under ASC 450-20, until a loss associated with settlement discussions or legal proceedings becomes probable and can be reasonably estimated, we consider our claim payment or rescission resolved for financial reporting purposes and do not accrue an estimated loss. When we determine that a loss is probable and can be reasonably estimated, we record our best estimate of our probable loss. In those cases, until settlement negotiations or legal proceedings are concluded (including the receipt of any necessary GSE approvals), it is possible that we will record an additional loss. In addition, from time to time, we are involved in other disputes and legal proceedings in the ordinary course of business. In our opinion, based on the facts known at this time, the ultimate resolution of these ordinary course disputes and legal proceedings will not have a material adverse effect on our financial position or results of operations.

Investments - Securities In Unrealized Loss Position (Details) - USD ($) $ in Thousands	Mar. 31, 2022	Dec. 31, 2021
Schedule of Investments [Line Items]
Less Than 12 Months - Fair Value	$ 3,219,080	$ 1,970,111
12 Months or Greater - Fair Value	322,775	85,830
Total - Fair Value	3,541,855	2,055,941
Less Than 12 Months - Unrealized Losses	(178,797)	(26,842)
12 Months or Greater - Unrealized Losses	(27,366)	(1,625)
Total - Unrealized Losses	(206,163)	(28,467)
U.S. Treasury securities and obligations of U.S. government corporations and agencies
Schedule of Investments [Line Items]
Less Than 12 Months - Fair Value	89,952	91,154
12 Months or Greater - Fair Value	2,589	2,616
Total - Fair Value	92,541	93,770
Less Than 12 Months - Unrealized Losses	(4,508)	(790)
12 Months or Greater - Unrealized Losses	(204)	(78)
Total - Unrealized Losses	(4,712)	(868)
Obligations of U.S. states and political subdivisions
Schedule of Investments [Line Items]
Less Than 12 Months - Fair Value	1,033,010	452,021
12 Months or Greater - Fair Value	36,513	15,540
Total - Fair Value	1,069,523	467,561
Less Than 12 Months - Unrealized Losses	(86,569)	(7,189)
12 Months or Greater - Unrealized Losses	(3,677)	(207)
Total - Unrealized Losses	(90,246)	(7,396)
Corporate debt securities
Schedule of Investments [Line Items]
Less Than 12 Months - Fair Value	1,305,092	865,085
12 Months or Greater - Fair Value	168,499	10,997
Total - Fair Value	1,473,591	876,082
Less Than 12 Months - Unrealized Losses	(66,461)	(13,260)
12 Months or Greater - Unrealized Losses	(18,199)	(516)
Total - Unrealized Losses	(84,660)	(13,776)
ABS
Schedule of Investments [Line Items]
Less Than 12 Months - Fair Value	82,000	100,064
12 Months or Greater - Fair Value	8,660	1,552
Total - Fair Value	90,660	101,616
Less Than 12 Months - Unrealized Losses	(3,066)	(998)
12 Months or Greater - Unrealized Losses	(398)	(10)
Total - Unrealized Losses	(3,464)	(1,008)
RMBS
Schedule of Investments [Line Items]
Less Than 12 Months - Fair Value	204,868	180,586
12 Months or Greater - Fair Value	39,473	31,641
Total - Fair Value	244,341	212,227
Less Than 12 Months - Unrealized Losses	(8,805)	(2,548)
12 Months or Greater - Unrealized Losses	(2,789)	(730)
Total - Unrealized Losses	(11,594)	(3,278)
CMBS
Schedule of Investments [Line Items]
Less Than 12 Months - Fair Value	222,998	89,889
12 Months or Greater - Fair Value	25,201	1,511
Total - Fair Value	248,199	91,400
Less Than 12 Months - Unrealized Losses	(7,773)	(1,887)
12 Months or Greater - Unrealized Losses	(1,667)	(49)
Total - Unrealized Losses	(9,440)	(1,936)
CLOs
Schedule of Investments [Line Items]
Less Than 12 Months - Fair Value	277,052	177,663
12 Months or Greater - Fair Value	41,840	21,973
Total - Fair Value	318,892	199,636
Less Than 12 Months - Unrealized Losses	(1,238)	(71)
12 Months or Greater - Unrealized Losses	(432)	(35)
Total - Unrealized Losses	(1,670)	(106)
Foreign government debt
Schedule of Investments [Line Items]
Less Than 12 Months - Fair Value	4,108	13,649
12 Months or Greater - Fair Value	0	0
Total - Fair Value	4,108	13,649
Less Than 12 Months - Unrealized Losses	(377)	(99)
12 Months or Greater - Unrealized Losses	0	0
Total - Unrealized Losses	$ (377)	$ (99)

Significant Accounting Policies Significant Accounting Policies (Tables)

3 Months Ended

Mar. 31, 2022

Accounting Standards Update and Change in Accounting Principle [Abstract]

Accounting Standards Update and Change in Accounting Principle

Table 2.1 shows the relevant new amendments to accounting standards, which are not yet effective or adopted.

Standard / Interpretation

Table

2.1

Amended Standards

Effective date

ASC 944

Long-Duration Contracts

•

ASU 2018-12 - Financial Services - Insurance (Topic 944): Targeted Improvements to the Accounting for Long-Duration Contracts

January 1, 2023

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Cash flows from operating activities:
Net income	$ 175,013	$ 150,021
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	15,395	17,422
Deferred tax expense	5,945	2,635
Loss on debt extinguishment	22,107	0
Net realized investment (gains) losses	1,505	(2,215)
Change in certain assets and liabilities:
Accrued investment income	1,502	(1,130)
Reinsurance recoverable on loss reserves	2,188	(7,859)
Reinsurance recoverable on paid losses	36,072	63
Premium receivable	(798)	937
Deferred insurance policy acquisition costs	133	(774)
Profit commission receivable	6,779	(5,430)
Loss reserves	(32,250)	32,573
Unearned premiums	(12,575)	(13,546)
Return premium accrual	(900)	2,900
Current income taxes	38,445	36,897
Other, net	(30,550)	(14,461)
Net cash provided by (used in) operating activities	228,011	198,033
Cash flows from investing activities:
Purchases of investments	(94,017)	(652,328)
Proceeds from sales of investments	218,373	59,378
Proceeds from maturity of fixed income securities	225,972	318,892
Additions to property and equipment	(888)	(441)
Net cash provided by (used in) investing activities	349,440	(274,499)
Cash flows from financing activities:
Purchase of convertible junior subordinated debentures	(56,965)	0
Repayment of FHLB Advance	(155,000)	0
Cash portion of loss on debt extinguishment	(22,107)	0
Repurchase of common stock	(123,640)	0
Dividends paid	(26,112)	(20,827)
Payment of withholding taxes related to share-based compensation net share settlement	(8,688)	(6,621)
Net cash provided by (used in) financing activities	(392,512)	(27,448)
Net increase (decrease) in cash and cash equivalents and restricted cash and cash equivalents	184,939	(103,914)
Cash and cash equivalents and restricted cash and cash equivalents at beginning of period	304,958	296,680
Cash and cash equivalents and restricted cash and cash equivalents at end of period	$ 489,897	$ 192,766

Investments

3 Months Ended

Mar. 31, 2022

Investments [Abstract]

Investments

Fixed income securities

Our fixed income securities classified as available-for-sale at March 31, 2022 and December 31, 2021 are shown in tables 7.1a and 7.1b below.


Details of fixed income securities by category as of March 31, 2022
Table	7.1a
(In thousands)		Amortized Cost		Gross Unrealized Gains		Gross Unrealized (Losses)		Fair Value
U.S. Treasury securities and obligations of U.S. government corporations and agencies		$	120,223	$	70	$	(4,712)	$	115,581
Obligations of U.S. states and political subdivisions		2,383,899		38,260		(90,246)		2,331,913
Corporate debt securities		2,572,570		14,382		(84,660)		2,502,292
ABS		117,517		91		(3,464)		114,144
RMBS		259,849		56		(11,594)		248,311
CMBS		298,490		267		(9,440)		289,317
CLOs		331,914		5		(1,670)		330,249
Foreign government debt		4,486		—		(377)		4,109

Total fixed income securities		$	6,088,948	$	53,131	$	(206,163)	$	5,935,916


Details of fixed income securities by category as of December 31, 2021
Table	7.1b

(In thousands)		Amortized Cost		Gross Unrealized Gains		Gross Unrealized (Losses) (1)		Fair Value
U.S. Treasury securities and obligations of U.S. government corporations and agencies		$	133,990	$	285	$	(868)	$	133,407
Obligations of U.S. states and political subdivisions		2,408,688		133,361		(7,396)		2,534,653
Corporate debt securities		2,704,586		75,172		(13,776)		2,765,982
ABS		150,888		830		(1,008)		150,710
RMBS		309,991		2,397		(3,278)		309,110
CMBS		315,330		5,736		(1,936)		319,130
CLOs		360,436		609		(106)		360,939
Foreign government debt		13,749		—		(99)		13,650
Total fixed income securities		$	6,397,658	$	218,390	$	(28,467)	$	6,587,581

We had $12.8 million and $13.4 million of investments at fair value on deposit with various states as of March 31, 2022 and December 31, 2021, respectively, due to regulatory requirements of those state insurance departments. In connection with our insurance and reinsurance activities within MAC and MIC, insurance subsidiaries of MGIC, we are required to maintain assets in trusts for the benefit of contractual counterparties, which had investments at fair value of $183.4 million and $189.8 million at March 31, 2022 and December 31, 2021, respectively.


Fixed income securities maturity schedule
Table	7.2
		March 31, 2022
(In thousands)		Amortized cost		Fair Value
Due in one year or less		$	319,247	$	320,108
Due after one year through five years		1,575,075		1,557,833
Due after five years through ten years		1,747,456		1,703,148
Due after ten years		1,439,400		1,372,806
		5,081,178		4,953,895

ABS		117,517		114,144
RMBS		259,849		248,311
CMBS		298,490		289,317
CLOs		331,914		330,249
Total as of March 31, 2022		$	6,088,948	$	5,935,916

The proceeds from the sale of fixed income securities classified as available-for-sale along with gross gains (losses) associated with such sales are shown in table 7.3 below.


Details of fixed income securities gains (losses)
Table	7.3	Three Months Ended March 31,
(in thousands)		2022	2021

Gains on sales		4,134	3,016
Losses on sales		(4,657)	(392)
Change in credit allowance		—	18

Proceeds from sales of fixed income securities		216,824	56,827

Equity securities

The cost and fair value of investments in equity securities at March 31, 2022 and December 31, 2021 are shown in tables 7.4a and 7.4b below.


Details of equity security investments as of March 31, 2022
Table	7.4a

(In thousands)		Cost		Gross Gains		Gross Losses		Fair Value
Equity securities		$	15,966	$	6	$	(781)	$	15,191


Details of equity security investments as of December 31, 2021
Table	7.4b

(In thousands)		Cost		Gross Gains		Gross Losses		Fair Value
Equity securities		$	15,838	$	264	$	(34)	$	16,068

For the three months ended March 31, 2022, we recognized $1.0 million of net losses on equity securities still held as of March 31, 2022. For the three months ended March 31, 2021, we recognized $0.4 million of net losses, on equity securities still held as of March 31, 2021.

Other invested assets

At December 31, 2021, the FHLB Advance amount was secured by $167.2 million of eligible collateral. As a result of the prepayment of the outstanding principal balance on the FHLB Advance we are no longer required to maintain collateral Our other invested assets balance includes an investment in FHLB stock that is carried at cost, which due to its nature approximates fair value. Ownership of FHLB stock provides access to a secured lending facility.

Unrealized investment losses


Unrealized loss aging for securities by type and length of time as of March 31, 2022
Table	7.5a

		Less Than 12 Months				12 Months or Greater				Total
(In thousands)		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
U.S. Treasury securities and obligations of U.S. government corporations and agencies		$	89,952	$	(4,508)	$	2,589	$	(204)	$	92,541	$	(4,712)
Obligations of U.S. states and political subdivisions		1,033,010		(86,569)		36,513		(3,677)		1,069,523		(90,246)
Corporate debt securities		1,305,092		(66,461)		168,499		(18,199)		1,473,591		(84,660)
ABS		82,000		(3,066)		8,660		(398)		90,660		(3,464)
RMBS		204,868		(8,805)		39,473		(2,789)		244,341		(11,594)
CMBS		222,998		(7,773)		25,201		(1,667)		248,199		(9,440)
CLOs		277,052		(1,238)		41,840		(432)		318,892		(1,670)
Foreign government debt		4,108		(377)		—		—		4,108		(377)
Total		$	3,219,080	$	(178,797)	$	322,775	$	(27,366)	$	3,541,855	$	(206,163)


Unrealized loss aging for securities by type and length of time as of December 31, 2021
Table	7.5b

		Less Than 12 Months				12 Months or Greater				Total
(In thousands)		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
U.S. Treasury securities and obligations of U.S. government corporations and agencies		$	91,154	$	(790)	$	2,616	$	(78)	$	93,770	$	(868)
Obligations of U.S. states and political subdivisions		452,021		(7,189)		15,540		(207)		467,561		(7,396)
Corporate debt securities		865,085		(13,260)		10,997		(516)		876,082		(13,776)
ABS		100,064		(998)		1,552		(10)		101,616		(1,008)
RMBS		180,586		(2,548)		31,641		(730)		212,227		(3,278)
CMBS		89,889		(1,887)		1,511		(49)		91,400		(1,936)
CLOs		177,663		(71)		21,973		(35)		199,636		(106)
Foreign government debt		13,649		(99)		—		—		13,649		(99)
Total		$	1,970,111	$	(26,842)	$	85,830	$	(1,625)	$	2,055,941	$	(28,467)

Based on current facts and circumstances, we believe the unrealized losses as of March 31, 2022 presented in table 7.5a above are not indicative of the ultimate collectability of the current amortized cost of the securities. The unrealized losses in all categories of our investments at March 31, 2022 were primarily caused by an increase in prevailing interest rates. We also rely upon estimates of several credit and non-credit factors in our review and evaluation of individual investments to determine whether a credit impairment exists. All of the securities in an unrealized loss position are current with respect to their interest obligations.

There were 909 and 610 securities in an unrealized loss position at March 31, 2022 and December 31, 2021, respectively.

We report accrued investment income separately from fixed income, available-for-sale, securities

Fair Value Measurements - Assets and Liabilities Not Measured at Fair Value (Details) - USD ($) $ in Thousands	Mar. 31, 2022	Dec. 31, 2021
Carrying Value
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Other invested assets	$ 850	$ 3,100
FHLB Advance	0	155,000
9% Convertible Junior Subordinated Debentures	53,239	110,204
Total financial liabilities	935,279	1,146,712
Fair Value \| Significant Other Observable Inputs (Level 2)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Other invested assets	850	3,100
FHLB Advance	0	157,585
9% Convertible Junior Subordinated Debentures	71,597	151,000
Total financial liabilities	$ 965,547	1,251,673
Senior Notes \| 5.75% Senior Notes Due 2023
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Stated interest rate	5.75%
Senior Notes \| 5.75% Senior Notes Due 2023 \| Carrying Value
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Senior Notes	$ 241,419	241,255
Senior Notes \| 5.75% Senior Notes Due 2023 \| Fair Value \| Significant Other Observable Inputs (Level 2)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Senior Notes	$ 251,009	256,213
Senior Notes \| 5.25% Senior Notes Due 2028
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Stated interest rate	5.25%
Senior Notes \| 5.25% Senior Notes Due 2028 \| Carrying Value
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Senior Notes	$ 640,621	640,253
Senior Notes \| 5.25% Senior Notes Due 2028 \| Fair Value \| Significant Other Observable Inputs (Level 2)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Senior Notes	$ 642,941	$ 686,875
9% Convertible Junior Subordinated Debentures
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Stated interest rate	9.00%

Loss Reserves - Reconciliation of Beginning and Ending Balances (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Loss Reserve [Roll Forward]
Reserve at beginning of period	$ 883,522	$ 880,537
Less reinsurance recoverable	66,905	95,042
Net reserve at beginning of period	816,617	785,495
Losses and LAE incurred in respect of delinquency notices received in:
Current year	36,344	41,425
Prior years	(55,658)	(1,789)
Total losses incurred	(19,314)	39,636
Losses and LAE paid in respect of delinquency notices received in:
Current year	0	0
Prior years	10,748	14,922
Total losses paid	10,748	14,922
Net reserve at end of period	786,555	810,209
Plus reinsurance recoverable	64,717	102,901
Reserve at end of period	$ 851,272	$ 913,110

Other Comprehensive Income

3 Months Ended

Mar. 31, 2022

Comprehensive Income (Loss), Net of Tax, Attributable to Parent [Abstract]

Other Comprehensive Income

The pretax and related income tax benefit (expense) components of our other comprehensive income (loss) for the three months ended March 31, 2022 and 2021 are included in table 9.1 below.


Components of other comprehensive income (loss)
Table	9.1
		Three Months Ended March 31,
(In thousands)		2022		2021
Net unrealized investment gains (losses) arising during the period		$	(342,960)	$	(119,150)
Total income tax benefit (expense)		72,022		25,021
Net of taxes		(270,938)		(94,129)

Net changes in benefit plan assets and obligations		498		1,105
Total income tax benefit (expense)		(105)		(232)
Net of taxes		393		873

Total other comprehensive income (loss)		(342,462)		(118,045)
Total income tax benefit (expense)		71,917		24,789
Total other comprehensive income (loss), net of tax		$	(270,545)	$	(93,256)

The pretax and related income tax benefit (expense) components of the amounts reclassified from our accumulated other comprehensive income (loss) (“AOCI”) to our consolidated statements of operations for the three months ended March 31, 2022 and 2021 are included in table 9.2 below.


Reclassifications from AOCI
Table	9.2
		Three Months Ended March 31,
(In thousands)		2022		2021
Reclassification adjustment for net realized (losses) gains(1)		$	4,841	$	3,940
Income tax benefit (expense)		(1,017)		(827)
Net of taxes		3,824		3,113

Reclassification adjustment related to benefit plan assets and obligations (2)		(498)		(1,105)
Income tax benefit (expense)		105		232
Net of taxes		(393)		(873)

Total reclassifications		4,343		2,835
Income tax benefit (expense)		(912)		(595)
Total reclassifications, net of tax		$	3,431	$	2,240

(1)Increases (decreases) Net realized investment gains (losses) on the consolidated statements of operations.

(2)Decreases (increases) Other underwriting and operating expenses, net on the consolidated statements of operations.

A rollforward of AOCI for the three months ended March 31, 2022, including amounts reclassified from AOCI, are included in table 9.3 below.


Rollforward of AOCI
Table	9.3
		Three Months Ended March 31, 2022
(In thousands)		Net unrealized gains and (losses) on available-for-sale securities		Net benefit plan assets and (obligations) recognized in shareholders' equity		Total accumulated other comprehensive income (loss)
Balance at December 31, 2021, net of tax		$	150,038	$	(30,341)	$	119,697
Other comprehensive income before reclassifications		(267,114)		—		(267,114)
Less: Amounts reclassified from AOCI		3,824		(393)		3,431
Balance, March 31, 2022, net of tax		$	(120,900)	$	(29,948)	$	(150,848)

Reinsurance

3 Months Ended

Mar. 31, 2022

Reinsurance Disclosures [Abstract]

Reinsurance

The reinsurance agreements to which we are a party, are discussed below. The effect of all of our reinsurance agreements on premiums earned and losses incurred is shown in table 4.1 below.


Reinsurance
Table	4.1
		Three Months Ended March 31,
(In thousands)		2022		2021
Premiums earned:
Direct		$	287,273	$	296,271
Assumed		2,126		2,411
Ceded (1)		(34,159)		(43,637)
Net premiums earned		$	255,240	$	255,045

Losses incurred:
Direct		$	(21,092)	$	48,071
Assumed		(207)		(25)
Ceded		1,985		(8,410)
Losses incurred, net		$	(19,314)	$	39,636

(1)Ceded premiums earned net of profit commission.

Quota share reinsurance

We have entered into quota share reinsurance ("QSR") transactions with panels of third-party reinsurers to cede a fixed quota share percentage of premiums earned and received and losses incurred on insurance covered by the transactions. We receive the benefit of a ceding commission equal to 20% of premiums ceded before profit commission. We also receive the benefit of a profit commission through a reduction of premiums we cede. The profit commission varies inversely with the level of losses on a “dollar for dollar” basis and can be eliminated at annual loss ratios higher than we have experienced on our QSR Transactions.

Each of our QSR Transactions typically have annual loss ratio caps of 300% and lifetime loss ratios of 200%.

Table 4.2 below provides additional detail regarding our QSR Transactions.


Quota Share Reinsurance
Table	4.2

Quota Share Contract		Covered Policy Years	Quota Share %		Annual Loss Ratio to Exhaust Profit Commission (1)		Contractual Termination Date
2015 QSR		Prior to 2017	15.0	%	68.0	%	December 31, 2031
2019 QSR		2019	30.0	%	62.0	%	December 31, 2030
2020 QSR		2020	12.5	%	62.0	%	December 31, 2031
2020 QSR and 2021 QSR		2020	17.5	%	62.0	%	December 31, 2032
2020 QSR and 2021 QSR		2021	17.5	%	61.9	%	December 31, 2032
2021 QSR and 2022 QSR		2021	12.5	%	57.5	%	December 31, 2032
2021 QSR and 2022 QSR		2022	15.0	%	57.5	%	December 31, 2033
2022 QSR and 2023 QSR		2022	15.0	%	62.0	%	December 31, 2033
2022 QSR and 2023 QSR		2023	15.0	%	62.0	%	December 31, 2034
Credit Union QSR (2)		2020-2025	65.0	%	50.0	%	December 31, 2039

(1) We will receive a profit commission provided the annual loss ratio on policies covered under the transaction remains below this ratio.

(2) Eligible credit union business written before April 1, 2020 was covered by our 2019 and prior QSR Transactions.

We can elect to terminate the QSR Transactions under specified scenarios without penalty upon prior written notice, including if we will receive less than 90% (80% for the Credit Union QSR Transaction ) of the full credit amount under the PMIERs, full financial statement credit or full credit under applicable regulatory capital requirements for the risk ceded in any required calculation period.

Quota Share Reinsurance

Table

4.3

Quota Share Contract

Optional Termination Date (1)

Optional Quota Share % Reduction Date (2)

Optional Reduced Quota Share %

2015 QSR

June 30, 2021

2019 QSR

July 1, 2022

25% or 20%

2020 QSR

December 31, 2022

July 1, 2022

10.5% or 8%

2020 QSR and 2021 QSR, 2020 Policy year

December 31, 2022

July 1, 2022

14.5% or 12%

2020 QSR and 2021 QSR, 2021 Policy year

December 31, 2023

July 1, 2022

14.5% or 12%

2021 QSR and 2022 QSR. 2021 Policy Year

December 31, 2023

July 1, 2022

10.5% or 8%

2021 QSR and 2022 QSR, 2022 Policy Year

December 31, 2024

July 1, 2023

12.5% or 10%

2022 QSR and 2023 QSR, 2022 Policy Year

December 31, 2024

July 1, 2023

12.5% or 10%

2022 QSR and 2023 QSR, 2023 Policy Year

December 31, 2025

July 1, 2024

12.5% or 10%

(1) We can elect early termination of the QSR Transaction beginning on this date, and bi-annually thereafter.

(2) We can elect to reduce the quota share percentage beginning on this date, and bi-annually thereafter.

See Note 9 “Reinsurance” in our Annual Report on Form 10-K for the year ended December 31, 2021 for information about the termination of our 2017 and 2018 QSR Transactions, which resulted in a reinsurance recoverable on paid losses of $36 million for loss and loss adjustment expenses (“LAE”) reserves incurred at the time of termination.

Table 4.4 below provides a summary of our QSR Transactions, for the three months ended March 31, 2022 and 2021.


Quota Share Reinsurance
Table	4.4
		Three Months Ended March 31,
(In thousands)		2022		2021
Ceded premiums written and earned, net of profit commission		$	22,378	$	33,390
Ceded losses incurred		(1,985)		8,405
Ceding commissions (1)		12,272		13,067
Profit commission		38,980		31,944

(1) Ceding commissions are reported within Other underwriting and operating expenses, net on the consolidated statements of operations.

Ceded losses incurred for the three months ended March 31, 2022 reflect favorable loss reserve development primarily related to delinquencies received in the second and third quarters of 2020 (“Peak COVID-19” delinquencies). See Note 11 - “Loss Reserves” for discussion of our loss reserves.

Under the terms of our QSR Transactions, ceded premiums, ceding commissions, profit commission, and ceded paid loss and LAE are settled net on a quarterly basis. The ceded premiums due after deducting the related ceding commission and profit commission is reported within Other liabilities on the consolidated balance sheets.

The reinsurance recoverable on loss reserves related to our QSR Transactions was $64.7 million as of March 31, 2022 and $66.9 million as of December 31, 2021. The reinsurance recoverable balance is secured by funds on deposit from the reinsurers, the minimum amount of which is based on the greater of 1) a reinsurer's funding requirements under PMIERs or 2) ceded reserves and unpaid losses. Each of the reinsurers under our quota share reinsurance agreements described above has an insurer financial strength rating of A- or better (or a comparable rating) by Standard and Poor's Rating Services, A.M. Best, Moody's, or a combination of the three..

Excess of loss reinsurance

We have aggregate excess of loss reinsurance transactions (“Home Re Transactions”) with unaffiliated special purpose insurers (“Home Re Entities”). For the reinsurance coverage periods, we retain the first layer of the respective aggregate losses paid, and a Home Re Entity will then provide second layer coverage up to the outstanding reinsurance coverage amount. We retain losses paid in excess of the outstanding reinsurance coverage amount. Subject to certain conditions, the reinsurance coverage decreases over a period of either 10 or 12.5 years, depending on the transaction, as the underlying covered mortgages amortize or are repaid, or mortgage insurance losses are paid.

The Home Re Entities financed the coverages by issuing mortgage insurance-linked notes (“ILNs”) to unaffiliated investors in an aggregate amount equal to the initial reinsurance coverage amounts. Each ILN is non-recourse to any assets of MGIC or affiliates. The proceeds of the ILNs, which were deposited into reinsurance trusts for the benefit of MGIC, will be the source of reinsurance claim payments to MGIC and principal repayments on the ILNs.

When a “Trigger Event” is in effect, payment of principal on the related notes will be suspended and the reinsurance coverage available to MGIC under the transactions will not be reduced by such principal payments. As of March 31, 2022 a "Trigger Event" has occurred on our Home Re 2018-1 and Home Re 2019-1 ILN transactions because the reinsured principal balance of loans that were reported 60 or more days delinquent exceeded a percentage of the total reinsured principal balance of loans specified under each transaction. A “Trigger Event” has also occurred on the Home Re 2021-2 ILN transaction because the credit enhancement of the most senior tranche is less than the target credit enhancement.

Table 4.5 provides a summary of our Home Re Transactions as of March 31, 2022 and December 31, 2021.


Excess of Loss Reinsurance
Table 4.5
($ in thousands)	Home Re 2021-2, Ltd.	Home Re 2021-1, Ltd.	Home Re 2020-1, Ltd.	Home Re 2019-1, Ltd.	Home Re 2018-1, Ltd.
Issue Date	August 3, 2021	February 2, 2021	October 29, 2020	May 25, 2019	October 30, 2018
Policy Inforce Dates	January 1, 2021 - May 28, 2021	August 1, 2020 - December 31, 2020	January 1, 2020 - July 31, 2020	January 1, 2018 - March 31, 2019	July 1, 2016 - December 31, 2017
Optional Call Date (1)	July 25, 2028	January 25, 2028	October 25, 2027	May 25, 2026	October 25, 2025
Legal Maturity	12.5 years	12.5 years	10 years	10 years	10 years
Initial First Layer Retention	190,159	211,159	275,283	185,730	168,691
Initial Excess of Loss Reinsurance Coverage	398,429	398,848	412,917	315,739	318,636
March 31, 2022
Remaining First Layer Retention	190,159	211,142	275,172	183,807	165,179
Remaining Excess of Loss Reinsurance Coverage	398,429	361,362	196,552	208,146	218,343
December 31, 2021
Remaining First Layer Retention	190,159	211,142	275,204	183,917	165,365
Remaining Excess of Loss Reinsurance Coverage	398,429	387,830	234,312	208,146	218,343

(1) We have the right to terminate the Home Re Transactions under certain circumstances and on any payment date on or after the respective Optional Call Date.

In April 2022, MGIC entered into a $473.6 million excess-of-loss reinsurance agreement (executed through an insurance linked note transaction) that covers policies with inforce dates from May 29, 2021 through December 31, 2021.

The reinsurance premiums ceded to each Home Re Entity are composed of coverage, initial expense and supplemental premiums. The coverage premiums are generally calculated as the difference between the amount of interest payable by the Home Re Entity on the remaining reinsurance coverage levels, and the investment income collected on the collateral assets held in a reinsurance trust account and used to collateralize the Home Re Entity’s reinsurance obligation to MGIC. The amount of monthly reinsurance coverage premium ceded will fluctuate due to changes in the reference rate and changes in money market rates that affect investment income collected on the assets in the reinsurance trust. The Home Re 2021-2 Transaction references SOFR, while the remaining Home Re Transactions reference one-month LIBOR. As a result, we concluded that each Home Re transaction contains an embedded derivative that is accounted for separately as a freestanding derivative. The fair values of the derivatives at March 31, 2022, were not material to our consolidated balance sheet, and the change in fair value during the three months ended March 31, 2022 was not material to our consolidated statements of operations. Total ceded premiums under the Home Re transaction were $11.8 million for the three months ended March 31, 2022, and $10.3 million for the three months ended March 31, 2021.

At the time the Home Re Transactions were entered into, we concluded that each Home Re Entity is a variable interest entity (“VIE”). A VIE is a legal entity that does not have sufficient equity at risk to finance its activities without additional subordinated financial support or is structured such that equity investors lack the ability to make sufficient decisions relating to the entity’s operations through voting rights or do not substantively participate in gains and losses of the entity. Given that MGIC (1) does not have the unilateral power to direct the activities that most significantly affect each Home Re Entity’s economic performance and (2) does not have the obligation to absorb losses or the right to receive benefits of each Home Re Entity that could be significant to the Home Re Entity, consolidation of the Home Re Entities is not required.

We are required to disclose our maximum exposure to loss, which we consider to be an amount that we could be required to record in our statements of operations, as a result of our involvement with the VIEs under our Home Re Transactions. As of March 31, 2022, and December 31, 2021, we did not have material exposure to the VIEs as we have no investment in the VIEs and had no reinsurance claim payments due from the VIEs under our reinsurance transactions. We are unable to determine the timing or extent of claims from losses that are ceded under the reinsurance transactions. The VIE assets are deposited in reinsurance trusts for the benefit of MGIC that will be the source of reinsurance claim payments to MGIC. The purpose of the reinsurance trusts is to provide security to MGIC for the obligations of the VIEs under the reinsurance transactions. The trustee of the reinsurance trusts, a recognized provider of corporate trust services, has established segregated accounts within the reinsurance trusts for the benefit of MGIC, pursuant to the trust agreements. The trust agreements are governed by, and construed in accordance with, the laws of the State of New York. If the trustee of the reinsurance trusts failed to distribute claim payments to us as provided in the reinsurance trusts, we would incur a loss related to our losses ceded under the reinsurance transactions and deemed unrecoverable. We are also unable to determine the impact such possible failure by the trustee to perform pursuant to the reinsurance trust agreements may have on our consolidated financial statements. As a result, we are

unable to quantify our maximum exposure to loss related to our involvement with the VIEs. MGIC has certain termination rights under the reinsurance transactions should its claims not be paid. We consider our exposure to loss from our reinsurance transactions with the VIEs to be remote.

Table 4.6 presents the total assets of the Home Re Entities as of March 31, 2022 and December 31, 2021.


Home Re total assets
Table	4.6
(In thousands)
Home Re Entity		Total VIE Assets
March 31, 2022
Home Re 2018-1 Ltd.		$	218,343
Home Re 2019-1 Ltd.		208,146
Home Re 2020-1 Ltd.		209,686
Home Re 2021-1 Ltd.		370,621
Home Re 2021-2 Ltd.		398,429

December 31, 2021
Home Re 2018-1 Ltd.		$	218,343
Home Re 2019-1 Ltd.		208,146
Home Re 2020-1 Ltd.		251,387
Home Re 2021-1 Ltd.		398,848
Home Re 2021-2 Ltd.		398,429

The reinsurance trust agreements provide that the trust assets may generally only be invested in certain money market funds that (i) invest at least 99.5% of their total assets in cash or direct U.S. federal government obligations, such as U.S. Treasury bills, as well as other short-term securities backed by the full faith and credit of the U.S. federal government or issued by an agency of the U.S. federal government, (ii) have a principal stability fund rating of “AAAm” by S&P or a money market fund rating of “Aaamf” by Moody’s as of the Closing Date and thereafter maintain any rating with either S&P or Moody’s, and (iii) are permitted investments under the applicable credit for reinsurance laws and applicable PMIERs credit for reinsurance requirements.

The total calculated PMIERs credit for risk ceded under our Home Re Transactions is generally based on the PMIERs requirement of the covered policies and the attachment and detachment points of the coverage, all of which fluctuate over time. (see Note 1 - “Nature of Business and Basis of Presentation”).

Fair Value Measurements - Unobservable Input Reconciliation (Details) - Real Estate Acquired - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Balance at beginning of period	$ 1,507	$ 1,092
Purchases	502	2,008
Sales	(1,026)	(1,431)
Included in earnings and reported as losses incurred, net	69	125
Balance at end of period	$ 1,052	$ 1,794

Investments - Amortized Cost and Fair Values of Debt Securities (Details) - USD ($) $ in Thousands	Mar. 31, 2022	Dec. 31, 2021
Amortized cost
Due in one year or less	$ 319,247
Due after one year through five years	1,575,075
Due after five years through ten years	1,747,456
Due after ten years	1,439,400
Total debt securities with single maturity date, amortized cost	5,081,178
Amortized Cost	6,088,948	$ 6,397,658
Fair Value
Due in one year or less	320,108
Due after one year through five years	1,557,833
Due after five years through ten years	1,703,148
Due after ten years	1,372,806
Total debt securities with single maturity date, fair value	4,953,895
Total at end of period	5,935,916	6,587,581
ABS
Amortized cost
Total debt securities without single maturity date, amortized cost	117,517
Amortized Cost	117,517	150,888
Fair Value
Total debt securities without single maturity date, fair value	114,144
Total at end of period	114,144	150,710
RMBS
Amortized cost
Total debt securities without single maturity date, amortized cost	259,849
Amortized Cost	259,849	309,991
Fair Value
Total debt securities without single maturity date, fair value	248,311
Total at end of period	248,311	309,110
CMBS
Amortized cost
Total debt securities without single maturity date, amortized cost	298,490
Amortized Cost	298,490	315,330
Fair Value
Total debt securities without single maturity date, fair value	289,317
Total at end of period	289,317	319,130
CLOs
Amortized cost
Total debt securities without single maturity date, amortized cost	331,914
Amortized Cost	331,914	360,436
Fair Value
Total debt securities without single maturity date, fair value	330,249
Total at end of period	$ 330,249	$ 360,939

Debt (Tables)

3 Months Ended

Mar. 31, 2022

Debt Disclosure [Abstract]

Long-term debt

The aggregate carrying values of our long-term debt obligations and their par values, if different, as of March 31, 2022 and December 31, 2021 are presented in table 3.1 below.


Long-term debt obligations
Table	3.1
(In millions)		March 31, 2022		December 31, 2021
FHLB Advance - 1.91%, due February 2023		$	—	$	155.0
5.75% Notes, due August 2023 (par value: $242.3 million)		241.4		241.3
5.25% Notes, due August 2028 (par value: $650 million)		640.6		640.2
9% Debentures, due April 2063 (1)		53.3		110.2
Long-term debt, carrying value		$	935.3	$	1,146.7

Shareholders' Equity (Details) - USD ($) $ / shares in Units, $ in Thousands, shares in Millions		1 Months Ended		3 Months Ended		12 Months Ended
	Apr. 28, 2022	Apr. 30, 2022	Mar. 31, 2022	Mar. 31, 2022	Mar. 31, 2021	Dec. 31, 2021	Jan. 01, 2021
Class of Stock [Line Items]
Retained earnings			$ 3,399,935	$ 3,399,935		$ 3,250,691
Shares repurchased in period (in shares)				8.5		19.0
Shares repurchased, weighted average price per share				$ 14.99		$ 15.30
Remaining authorized repurchase amount			$ 372,000	$ 372,000
Repurchase of common stock				$ 123,640	$ 0
Quarterly cash dividend paid (per share)			$ 0.08
Cash dividends			$ 25,800
Cumulative Effect, Period of Adoption, Adjustment
Class of Stock [Line Items]
Retained earnings							$ 68,300
Additional paid in capital							$ 68,300
Subsequent Event
Class of Stock [Line Items]
Shares repurchased in period (in shares)		3.0
Repurchase of common stock		$ 39,700
Quarterly cash dividend declared (per share)	$ 0.08

Shareholders' Equity	3 Months Ended
Shareholders' Equity	Mar. 31, 2022
Stockholders' Equity Note [Abstract]
Shareholders' Equity	Shareholders’ Equity Change in Accounting Policy As of January 1, 2021, we adopted the updated guidance for "Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity”. The application of this guidance resulted in a $68.3 million cumulative effect adjustment to our 2021 beginning retained earnings and paid in capital to reflect the 9% Debenture as if we had always accounted for the debt as a liability in its entirety. Share repurchase programs Repurchases of our common stock may be made from time to time on the open market (including through 10b5-1 plans) or through privately negotiated transactions. In the first quarter of 2022, we repurchased 8.5 million shares at an average cost of $14.99 per share, which included commissions. In 2021, we repurchased approximately 19.0 million shares of our common stock, at an average cost of $15.30 per share, which included commissions. At March 31, 2022 we had $372 million remaining under a share repurchase program approved by our Board of Directors in 2021. In April 2022, we repurchased an additional 3.0 million shares totaling $39.7 million under the remaining authorization that expires at year end 2023. Cash dividends In March 2022, we paid quarterly cash dividends of $0.08 per share to shareholders which totaled $25.8 million. On April 28, 2022, the Board of Directors declared a quarterly cash dividend to holders of the company’s common stock of $0.08 per share payable on May 26, 2022, to shareholders of record at the close of business on May 12, 2022.

- Definition

The entire disclosure for shareholders' equity comprised of portions attributable to the parent entity and noncontrolling interest, including other comprehensive income. Includes, but is not limited to, balances of common stock, preferred stock, additional paid-in capital, other capital and retained earnings, accumulated balance for each classification of other comprehensive income and amount of comprehensive income.

+ References

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-Topic 505
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Reference 3: http://www.xbrl.org/2003/role/disclosureRef
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-Topic 505
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-Subparagraph (SX 210.3-04)
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Reference 6: http://www.xbrl.org/2003/role/disclosureRef
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-Subparagraph (d)
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Reference 7: http://www.xbrl.org/2003/role/disclosureRef
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-Publisher FASB
-Name Accounting Standards Codification
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-URI http://asc.fasb.org/topic&trid=2208762

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
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-URI http://asc.fasb.org/extlink&oid=123467817&loc=SL123496189-112644

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
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-URI http://asc.fasb.org/extlink&oid=123467817&loc=SL123496180-112644

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+ Details

Benefit Plans (Tables)

3 Months Ended

Mar. 31, 2022

Retirement Benefits [Abstract]

Components of net periodic benefit cost


Components of net periodic benefit cost
Table	10.1
		Three Months Ended March 31,
		Pension and Supplemental Executive Retirement Plans				Other Postretirement Benefit Plans
(In thousands)		2022		2021		2022		2021
Service cost		$	1,757	$	1,664	$	348	$	364
Interest cost		2,877		2,810		177		164
Expected return on plan assets		(4,952)		(5,202)		(2,625)		(2,215)
Amortization of net actuarial losses (gains)		1,183		1,550		(754)		(439)
Amortization of prior service cost (credit)		(53)		(60)		122		53

Net periodic benefit cost (benefit)		$	812	$	762	$	(2,732)	$	(2,073)

Reinsurance - Variable Interest Entity (Details) - USD ($) $ in Thousands	Mar. 31, 2022	Dec. 31, 2021
Effects of Reinsurance [Line Items]
Assets	$ 398,429	$ 398,429

- Definition

Sum of the carrying amounts as of the balance sheet date of all assets that are recognized. Assets are probable future economic benefits obtained or controlled by an entity as a result of past transactions or events.

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+ Details

Other Comprehensive Income (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Total other comprehensive income (loss)	$ (342,462)	$ (118,045)
Income tax benefit (expense)	71,917	24,789
Other comprehensive income (loss), net of tax	(270,545)	(93,256)
Amounts Reclassified From Accumulated Other Comprehensive Income [Abstract]
Total reclassifications before tax	219,439	189,617
Income tax benefit (expense)	(44,426)	(39,596)
Total reclassifications, net of tax	175,013	150,021
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Balance, beginning of period	4,861,382
Other comprehensive income before reclassifications	(267,114)
Less: Amounts reclassified from AOCI	3,431
Balance, end of period	4,610,355	4,732,293
Reclassification from Accumulated Other Comprehensive Income
Amounts Reclassified From Accumulated Other Comprehensive Income [Abstract]
Total reclassifications before tax	4,343	2,835
Income tax benefit (expense)	(912)	(595)
Total reclassifications, net of tax	3,431	2,240
Accumulated other comprehensive income (loss)
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Other comprehensive income (loss), net of tax	(270,545)	(93,256)
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Balance, beginning of period	119,697	216,821
Balance, end of period	(150,848)	123,565
Net unrealized gains and (losses) on available-for-sale securities
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Total other comprehensive income (loss)	(342,960)	(119,150)
Income tax benefit (expense)	72,022	25,021
Other comprehensive income (loss), net of tax	(270,938)	(94,129)
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Balance, beginning of period	150,038
Other comprehensive income before reclassifications	(267,114)
Less: Amounts reclassified from AOCI	3,824
Balance, end of period	(120,900)
Net unrealized gains and (losses) on available-for-sale securities \| Reclassification from Accumulated Other Comprehensive Income
Amounts Reclassified From Accumulated Other Comprehensive Income [Abstract]
Total reclassifications before tax	4,841	3,940
Income tax benefit (expense)	(1,017)	(827)
Total reclassifications, net of tax	3,824	3,113
Net benefit plan assets and (obligations) recognized in shareholders' equity
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Total other comprehensive income (loss)	498	1,105
Income tax benefit (expense)	(105)	(232)
Other comprehensive income (loss), net of tax	393	873
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Balance, beginning of period	(30,341)
Other comprehensive income before reclassifications	0
Less: Amounts reclassified from AOCI	(393)
Balance, end of period	(29,948)
Net benefit plan assets and (obligations) recognized in shareholders' equity \| Reclassification from Accumulated Other Comprehensive Income
Amounts Reclassified From Accumulated Other Comprehensive Income [Abstract]
Total reclassifications before tax	(498)	(1,105)
Income tax benefit (expense)	105	232
Total reclassifications, net of tax	$ (393)	$ (873)

Loss Reserves - Delinquent Items (Details) - loan	Mar. 31, 2022	Dec. 31, 2021	Mar. 31, 2021	Dec. 31, 2020
Aging of the Primary Delinquent Inventory [Abstract]
3 months or less (in loans)	7,382	7,586	9,194
4 - 11 months (in loans)	8,131	7,990	29,832
12 months or more (in loans)	14,949	17,714	13,749
Total primary delinquent inventory (in loans)	30,462	33,290	52,775	57,710
3 months or less (as a percent)	24.00%	23.00%	17.00%
4 - 11 months (as a percent)	27.00%	24.00%	57.00%
12 months or more (as a percent)	49.00%	53.00%	26.00%
Total primary delinquent inventory (as a percent)	100.00%	100.00%	100.00%
Primary claims received inventory included in ending delinquent inventory (in loans)	217	211	151
Percent of 12 months or more delinquent inventory, delinquent for more than 36 months (as a percent)	23.00%	20.00%	26.00%

Significant Accounting Policies

3 Months Ended

Mar. 31, 2022

Accounting Standards Update and Change in Accounting Principle [Abstract]

Significant Accounting Policies

Prospective Accounting Standards

Table 2.1 shows the relevant new amendments to accounting standards, which are not yet effective or adopted.

Standard / Interpretation

Table

2.1

Amended Standards

Effective date

ASC 944

Long-Duration Contracts

•

ASU 2018-12 - Financial Services - Insurance (Topic 944): Targeted Improvements to the Accounting for Long-Duration Contracts

January 1, 2023

Targeted Improvements for Long Duration Contracts: ASU 2018-12

- Definition

The entire disclosure for change in accounting principle. Includes, but is not limited to, nature, reason, and method of adopting amendment to accounting standards or other change in accounting principle.

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+ Details

CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Premiums written:
Direct	$ 274,793	$ 283,005
Assumed	2,031	2,131
Ceded	(34,159)	(43,637)
Net premiums written	242,665	241,499
Decrease in unearned premiums, net	12,575	13,546
Net premiums earned	255,240	255,045
Investment income, net of expenses	38,262	37,893
Net realized investment gains (losses)	(1,505)	2,215
Other revenue	2,619	2,804
Total revenues	294,616	297,957
Losses and expenses:
Losses incurred, net	(19,314)	39,636
Amortization of deferred policy acquisition costs	2,740	2,696
Other underwriting and operating expenses, net	54,732	48,023
Loss on debt extinguishment	22,107	0
Interest expense	14,912	17,985
Total losses and expenses	75,177	108,340
Income before tax	219,439	189,617
Provision for income tax	44,426	39,596
Net income	$ 175,013	$ 150,021
Earnings per share:
Basic (in dollars per share)	$ 0.55	$ 0.44
Diluted (in dollars per share)	$ 0.54	$ 0.43
Weighted average common shares outstanding - basic (in shares)	315,975	338,904
Weighted average common shares outstanding - diluted (in shares)	324,538	356,383

Statutory Information

3 Months Ended

Mar. 31, 2022

Statutory Capital [Abstract]

Insurance Disclosure

Statutory Information

Statutory Capital Requirements

The insurance laws of 16 jurisdictions, including Wisconsin, our domiciliary state, require a mortgage insurer to maintain a minimum amount of statutory capital relative to the RIF (or a similar measure) in order for the mortgage insurer to continue to write new business. We refer to these requirements as the “State Capital Requirements” and, together with the GSE Financial Requirements, the “Financial Requirements.” While they vary among jurisdictions, the most common State Capital Requirements allow for a maximum risk-to-capital ratio of 25 to 1. A risk-to-capital ratio will increase if (i) the percentage decrease in capital exceeds the percentage decrease in insured risk, or (ii) the percentage increase in capital is less than the percentage increase in insured risk. Wisconsin does not regulate capital by using a risk-to-capital measure but instead requires a minimum policyholder position (“MPP”). MGIC’s “policyholder position” includes its net worth or surplus, and its contingency loss reserve.

At March 31, 2022, MGIC’s risk-to-capital ratio was 9.2 to 1, below the maximum allowed by the jurisdictions with State Capital Requirements, and its policyholder position was $3.7 billion above the required MPP of $1.9 billion. The calculation of our risk-to-capital ratio and MPP reflect credit for the risk ceded under our reinsurance transactions. If MGIC is not allowed an agreed level of credit under either the State Capital Requirements or the financial requirements of the PMIERs, MGIC may terminate the reinsurance agreements, without penalty.

At March 31, 2022, the risk-to-capital ratio of our combined insurance operations (which includes a reinsurance affiliate) was 9.2 to 1.

Dividend restrictions

MGIC is subject to statutory regulations as to payment of dividends. The maximum amount of dividends that MGIC may pay in any twelve-month period without regulatory approval by the OCI is the lesser of adjusted statutory net income or 10% of statutory ‘policyholders’ surplus as of the preceding calendar year end. Adjusted statutory net income is defined for this purpose to be the greater of statutory net income, net of realized investment gains, for the calendar year preceding the date of the dividend or statutory net income, net of realized investment gains, for the three calendar years preceding the date of the dividend less dividends paid within the first two of the preceding three calendar years. The maximum dividend that could be paid is reduced by dividends paid in the twelve months preceding the dividend payment date. Before making any dividend payments, we will notify the OCI to ensure it does not object. In April 2022, MGIC obtained approval to pay a $400 million dividend to our holding company.

The OCI recognizes only statutory accounting principles prescribed, or practices permitted by the State of Wisconsin for determining and reporting the financial condition and results of operations of an insurance company. The OCI has adopted certain prescribed accounting practices that differ from those found in other states. Specifically, Wisconsin domiciled companies record changes in the contingency loss reserves through their income statement as a change in underwriting deduction. As a result, in periods in which MGIC is increasing contingency loss reserves, statutory net income is reduced.

Statutory Financial Information

The statutory net income, policyholders’ surplus, and contingency reserve liability of our insurance subsidiaries, which agrees to amounts utilized in our risk-to-capital calculations, are shown in table 14.1.


Financial information of our insurance subsidiaries
Table 14.1
	As of and for the Three Months Ended March 31,
(In thousands)	2022		2021
Statutory net income	$	96,018	$	47,775
Statutory policyholders' surplus	1,319,633		1,383,114
Contingency reserve	4,263,599		3,733,126

Statutory Information Statutory Information (Tables)

3 Months Ended

Mar. 31, 2022

Statutory Capital [Abstract]

Summary of amounts disclosed under statutory accounting practices


Financial information of our insurance subsidiaries
Table 14.1
	As of and for the Three Months Ended March 31,
(In thousands)	2022		2021
Statutory net income	$	96,018	$	47,775
Statutory policyholders' surplus	1,319,633		1,383,114
Contingency reserve	4,263,599		3,733,126

- Definition

Tabular disclosure of how the entity's reporting under GAAP as of the balance sheet date differs from the results based on prescribed and permitted accounting practices of the state or country of domicile in which a relevant statutory filing is made, or differences in results based on the National Association of Insurance Commissioners (NAIC) prescribed practices, or a combination thereof. Describes the accounting practices used and the related monetary effect on statutory surplus, net income, and risk-based capital. If an insurance enterprise's risk-based capital would have triggered a regulatory event had it not used a permitted practice, that fact is disclosed in the financial statements. Permitted statutory accounting practices include practices not prescribed but allowed by the domiciliary state insurance department regulatory authority.

+ References + Details

Reinsurance - Narrative (Details) - USD ($) $ in Thousands	3 Months Ended
Reinsurance - Narrative (Details) - USD ($) $ in Thousands	Mar. 31, 2022	Mar. 31, 2021	Dec. 31, 2021	Dec. 31, 2020
Effects of Reinsurance [Line Items]
Reinsurance recoverable on paid losses	$ 203		$ 36,275
Reinsurance recoverable on loss reserves	64,717	$ 102,901	66,905	$ 95,042
Ceded premiums	$ 34,159	43,637
Percent of total trust assets invested in cash or direct U.S. federal government obligations	99.50%
Quota Share Reinsurance Agreements
Effects of Reinsurance [Line Items]
Ceding commission, percentage (as a percent)	20.00%
Reinsurance, Quota Share Reinsurance Agreement, Terms, Annual Loss Ratio Cap	300.00%
Reinsurance, Quota Share Reinsurance Agreement, Terms, Lifetime Loss Ratio Cap	200.00%
Threshold for private mortgage insurer eligibility requirements for termination election (less than) (as a percent)	90.00%
Reinsurance recoverable on loss reserves	$ 64,700		66,900
Credit Union QSR
Effects of Reinsurance [Line Items]
Threshold for private mortgage insurer eligibility requirements for termination election (less than) (as a percent)	80.00%
Quota Share Reinsurance Agreements, 2017 & 2018
Effects of Reinsurance [Line Items]
Reinsurance recoverable on paid losses			$ 36,000
Excess of Loss Reinsurance Agreement, Home Re
Effects of Reinsurance [Line Items]
Ceded premiums	$ 11,800	$ 10,300
Excess of Loss Reinsurance Agreement, Home Re \| Minimum
Effects of Reinsurance [Line Items]
Amortization period excess of loss reinsurance coverage	10 years
Excess of Loss Reinsurance Agreement, Home Re \| Maximum
Effects of Reinsurance [Line Items]
Amortization period excess of loss reinsurance coverage	12 years 6 months

Litigation and Contingencies (Details)	3 Months Ended	12 Months Ended
Litigation and Contingencies (Details)	Mar. 31, 2022	Dec. 31, 2021
Commitments and Contingencies Disclosure [Abstract]
Average paid claim reduction due to curtailments (as a percent)	5.30%	4.40%

Benefit Plans (Details) - USD ($) $ in Thousands	3 Months Ended
Benefit Plans (Details) - USD ($) $ in Thousands	Mar. 31, 2022	Mar. 31, 2021
Pension and Supplemental Executive Retirement Plans
Components of Net Periodic Benefit Cost [Abstract]
Service cost	$ 1,757	$ 1,664
Interest cost	2,877	2,810
Expected return on plan assets	(4,952)	(5,202)
Amortization of net actuarial losses (gains)	1,183	1,550
Amortization of prior service cost (credit)	(53)	(60)
Net periodic benefit cost (benefit)	812	762
Future company contributions to pension and supplemental executive retirements plans	6,500
Other Postretirement Benefit Plans
Components of Net Periodic Benefit Cost [Abstract]
Service cost	348	364
Interest cost	177	164
Expected return on plan assets	(2,625)	(2,215)
Amortization of net actuarial losses (gains)	(754)	(439)
Amortization of prior service cost (credit)	122	53
Net periodic benefit cost (benefit)	$ (2,732)	$ (2,073)

Reinsurance - Quota Share Agreement Terms (Details)	3 Months Ended
Reinsurance - Quota Share Agreement Terms (Details)	Mar. 31, 2022
2015 QSR
Effects of Reinsurance [Line Items]
Quota share for all policies covered (as a percent)	15.00%
Loss ratio threshold for profit commissions (as a percent)	68.00%
2019 QSR
Effects of Reinsurance [Line Items]
Quota share for all policies covered (as a percent)	30.00%
Loss ratio threshold for profit commissions (as a percent)	62.00%
Cede rate, option 1 (as a percent)	25.00%
Cede rate, option 2 (as a percent)	20.00%
2020 QSR
Effects of Reinsurance [Line Items]
Quota share for all policies covered (as a percent)	12.50%
Loss ratio threshold for profit commissions (as a percent)	62.00%
Cede rate, option 1 (as a percent)	10.50%
Cede rate, option 2 (as a percent)	8.00%
2020 and 2021 QSR - 2020 NIW
Effects of Reinsurance [Line Items]
Quota share for all policies covered (as a percent)	17.50%
Loss ratio threshold for profit commissions (as a percent)	62.00%
Cede rate, option 1 (as a percent)	14.50%
Cede rate, option 2 (as a percent)	12.00%
2020 and 2021 QSR - 2021 NIW
Effects of Reinsurance [Line Items]
Quota share for all policies covered (as a percent)	17.50%
Loss ratio threshold for profit commissions (as a percent)	61.90%
Cede rate, option 1 (as a percent)	14.50%
Cede rate, option 2 (as a percent)	12.00%
2021 and 2022 QSR - 2021 NIW
Effects of Reinsurance [Line Items]
Quota share for all policies covered (as a percent)	12.50%
Loss ratio threshold for profit commissions (as a percent)	57.50%
Cede rate, option 1 (as a percent)	10.50%
Cede rate, option 2 (as a percent)	8.00%
2021 and 2022 QSR - 2022 NIW
Effects of Reinsurance [Line Items]
Quota share for all policies covered (as a percent)	15.00%
Loss ratio threshold for profit commissions (as a percent)	57.50%
Cede rate, option 1 (as a percent)	12.50%
Cede rate, option 2 (as a percent)	10.00%
2022 and 2023 QSR - 2022 NIW
Effects of Reinsurance [Line Items]
Quota share for all policies covered (as a percent)	15.00%
Loss ratio threshold for profit commissions (as a percent)	62.00%
Cede rate, option 1 (as a percent)	12.50%
Cede rate, option 2 (as a percent)	10.00%
2022 and 2023 QSR - 2023 NIW
Effects of Reinsurance [Line Items]
Quota share for all policies covered (as a percent)	15.00%
Loss ratio threshold for profit commissions (as a percent)	62.00%
Cede rate, option 1 (as a percent)	12.50%
Cede rate, option 2 (as a percent)	10.00%
Credit Union QSR
Effects of Reinsurance [Line Items]
Quota share for all policies covered (as a percent)	65.00%
Loss ratio threshold for profit commissions (as a percent)	50.00%

Nature of Business and Basis of Presentation	3 Months Ended
Nature of Business and Basis of Presentation	Mar. 31, 2022
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Nature of Business and Basis of Presentation	Nature of Business and Basis of Presentation MGIC Investment Corporation is a holding company which, through Mortgage Guaranty Insurance Corporation (“MGIC”), is principally engaged in the mortgage insurance business. We provide mortgage insurance to lenders throughout the United States and to government sponsored entities to protect against loss from defaults on low down payment residential mortgage loans. MGIC Assurance Corporation (“MAC”) and MGIC Indemnity Corporation (“MIC”), insurance subsidiaries of MGIC, provide insurance for certain mortgages under Fannie Mae and Freddie Mac (the “GSEs”) credit risk transfer programs. The accompanying unaudited consolidated financial statements of MGIC Investment Corporation and its wholly-owned subsidiaries have been prepared in accordance with the instructions to Form 10-Q as prescribed by the Securities and Exchange Commission (“SEC”) for interim reporting and do not include all of the other information and disclosures required by accounting principles generally accepted in the United States of America (“GAAP”). These statements should be read in conjunction with the consolidated financial statements and notes thereto for the year ended December 31, 2021 included in our 2021 Annual Report on Form 10-K. As used below, “we,” “our” and “us” refer to MGIC Investment Corporation’s consolidated operations or to MGIC Investment Corporation, as the context requires. In the opinion of management, the accompanying financial statements include all adjustments, consisting primarily of normal recurring accruals, necessary to fairly state our consolidated financial position and consolidated results of operations for the periods indicated. The consolidated results of operations for an interim period are not necessarily indicative of the results that may be expected for the year ending December 31, 2022. The substantial majority of our NIW has been for loans purchased by the GSEs. The current private mortgage insurer eligibility requirements ("PMIERs") of the GSEs include financial requirements, as well as business, quality control and certain transactional approval requirements. The financial requirements of the PMIERs require a mortgage insurer’s "Available Assets" (generally only the most liquid assets of an insurer) to equal or exceed its "Minimum Required Assets" (which are based on an insurer's book of risk in force, calculated from tables of factors with several risk dimensions). Based on our application of the PMIERs, as of March 31, 2022, MGIC’s Available Assets are in excess of its Minimum Required Assets; and MGIC is in compliance with the PMIERs and eligible to insure loans purchased by the GSEs. Subsequent events We have considered subsequent events through the date of this filing.

Statutory Information - Summary of Amounts Disclosed Under Statutory Accounting Practices (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Statutory Capital [Abstract]
Statutory net income	$ 96,018	$ 47,775
Statutory policyholders' surplus	1,319,633	1,383,114
Contingency reserve	$ 4,263,599	$ 3,733,126

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Statement of Comprehensive Income [Abstract]
Net income	$ 175,013	$ 150,021
Other comprehensive income (loss), net of tax:
Change in unrealized investment gains and losses	(270,938)	(94,129)
Benefit plan adjustments	393	873
Other comprehensive income (loss), net of tax	(270,545)	(93,256)
Comprehensive income (loss)	$ (95,532)	$ 56,765

- Definition

The portion of profit or loss for the period, net of income taxes, which is attributable to the parent.

+ References

+ Details

Reinsurance - Summary of Premiums Earned and Losses Incurred (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Premiums earned:
Direct	$ 287,273	$ 296,271
Assumed	2,126	2,411
Ceded	(34,159)	(43,637)
Net premiums earned	255,240	255,045
Losses incurred:
Direct	(21,092)	48,071
Assumed	(207)	(25)
Ceded	1,985	(8,410)
Losses incurred, net	$ (19,314)	$ 39,636

Other Comprehensive Income (Tables)

3 Months Ended

Mar. 31, 2022

Comprehensive Income (Loss), Net of Tax, Attributable to Parent [Abstract]

Other comprehensive income

The pretax and related income tax benefit (expense) components of our other comprehensive income (loss) for the three months ended March 31, 2022 and 2021 are included in table 9.1 below.


Components of other comprehensive income (loss)
Table	9.1
		Three Months Ended March 31,
(In thousands)		2022		2021
Net unrealized investment gains (losses) arising during the period		$	(342,960)	$	(119,150)
Total income tax benefit (expense)		72,022		25,021
Net of taxes		(270,938)		(94,129)

Net changes in benefit plan assets and obligations		498		1,105
Total income tax benefit (expense)		(105)		(232)
Net of taxes		393		873

Total other comprehensive income (loss)		(342,462)		(118,045)
Total income tax benefit (expense)		71,917		24,789
Total other comprehensive income (loss), net of tax		$	(270,545)	$	(93,256)

Reclassification out of accumulated other comprehensive income


Reclassifications from AOCI
Table	9.2
		Three Months Ended March 31,
(In thousands)		2022		2021
Reclassification adjustment for net realized (losses) gains(1)		$	4,841	$	3,940
Income tax benefit (expense)		(1,017)		(827)
Net of taxes		3,824		3,113

Reclassification adjustment related to benefit plan assets and obligations (2)		(498)		(1,105)
Income tax benefit (expense)		105		232
Net of taxes		(393)		(873)

Total reclassifications		4,343		2,835
Income tax benefit (expense)		(912)		(595)
Total reclassifications, net of tax		$	3,431	$	2,240

(1)Increases (decreases) Net realized investment gains (losses) on the consolidated statements of operations.

(2)Decreases (increases) Other underwriting and operating expenses, net on the consolidated statements of operations.

Accumulated other comprehensive income (loss)

A rollforward of AOCI for the three months ended March 31, 2022, including amounts reclassified from AOCI, are included in table 9.3 below.


Rollforward of AOCI
Table	9.3
		Three Months Ended March 31, 2022
(In thousands)		Net unrealized gains and (losses) on available-for-sale securities		Net benefit plan assets and (obligations) recognized in shareholders' equity		Total accumulated other comprehensive income (loss)
Balance at December 31, 2021, net of tax		$	150,038	$	(30,341)	$	119,697
Other comprehensive income before reclassifications		(267,114)		—		(267,114)
Less: Amounts reclassified from AOCI		3,824		(393)		3,431
Balance, March 31, 2022, net of tax		$	(120,900)	$	(29,948)	$	(150,848)

Fair Value Measurements (Tables)

3 Months Ended

Mar. 31, 2022

Fair Value Disclosures [Abstract]

Fair value measurements for items measured at fair value


Assets carried at fair value by hierarchy level as of March 31, 2022
Table	8.1a
(In thousands)		Total Fair Value		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
U.S. Treasury securities and obligations of U.S. government corporations and agencies		$	115,581	$	90,816	$	24,765	$	—
Obligations of U.S. states and political subdivisions		2,331,913		—		2,331,913		—
Corporate debt securities		2,502,292		—		2,502,292		—
ABS		114,144		—		114,144		—
RMBS		248,311		—		248,311		—
CMBS		289,317		—		289,317		—
CLOs		330,249		—		330,249		—
Foreign government debt		4,109		—		4,109		—

Total fixed income securities		5,935,916		90,816		5,845,100		—
Equity securities		15,191		15,191		—		—
Cash Equivalents		473,712		473,712		—		—
Real estate acquired (1)		1,052		—		—		1,052
Total		$	6,425,871	$	579,719	$	5,845,100	$	1,052


Assets carried at fair value by hierarchy level as of December 31, 2021
Table	8.1b
(In thousands)		Total Fair Value		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
U.S. Treasury securities and obligations of U.S. government corporations and agencies		$	133,407	$	102,153	$	31,254	$	—
Obligations of U.S. states and political subdivisions		2,534,653		—		2,534,653		—
Corporate debt securities		2,765,982		—		2,765,982		—
ABS		150,710		—		150,710		—
RMBS		309,110		—		309,110		—
CMBS		319,130		—		319,130		—
CLOs		360,939		—		360,939		—
Foreign government debt		13,650		—		13,650		—
Total fixed income securities		6,587,581		102,153		6,485,428		—
Equity securities		16,068		16,068		—		—
Cash Equivalents		254,230		254,230		—		—
Real estate acquired (1)		1,507		—		—		1,507
Total		$	6,859,386	$	372,451	$	6,485,428	$	1,507

(1)Real estate acquired through claim settlement, which is held for sale, is reported in “Other assets” on the consolidated balance sheets.

Reconciliation of beginning and ending balance for assets and liabilities measured at fair value with significant unobservable inputs (level 3)


Fair value roll-forward for financial instruments classified as Level 3 for the three months ended March 31,
Table	8.2
		Real Estate Acquired
(In thousands)			2022		2021
Balance at December 31,			$	1,507	$	1,092
Purchases			502		2,008
Sales			(1,026)		(1,431)
Included in earnings and reported as losses incurred, net			69		125
Balance at March 31,			$	1,052	$	1,794

Carrying value and fair value of financial assets and liabilities

Table 8.3 presents the carrying value and fair value of our financial assets and liabilities disclosed, but not carried, at fair value at March 31, 2022 and December 31, 2021.


Financial assets and liabilities not measured at fair value
Table	8.3
		March 31, 2022				December 31, 2021
(In thousands)		Carrying Value		Fair Value		Carrying Value		Fair Value
Financial assets
Other invested assets		$	850	$	850	$	3,100	$	3,100

Financial liabilities
FHLB Advance		—		—		155,000		157,585
5.75% Senior Notes		241,419		251,009		241,255		256,213
5.25% Senior Notes		640,621		642,941		640,253		686,875
9% Convertible Junior Subordinated Debentures		53,239		71,597		110,204		151,000
Total financial liabilities		$	935,279	$	965,547	$	1,146,712	$	1,251,673